(MENAFN) US President Donald Trump on Friday pledged to impose sweeping new trade penalties against China, including 100% tariffs on all Chinese imports and severe restrictions on software exports, following Beijing's surprise decision to tighten controls over rare earth mineral exports.

“Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a tariff of 100% on China, over and above any tariff that they are currently paying,” Trump declared on his social media platform, Truth Social.

In the same post, he added: “Also on November 1st, we will impose Export Controls on any and all critical software. It is impossible to believe that China would have taken such an action, but they have, and the rest is history.”

Trump’s announcement comes in direct response to a new policy unveiled by China on Thursday, which expands prohibitions on the export of rare earth technologies. The decision bars foreign collaboration without prior state approval and tightens oversight on a range of strategic processes including mining, smelting, and recycling.

Beijing’s Commerce Ministry, as reported by media, stated the measure is designed to protect national interests. The new rules cover "technologies and related data involving rare earth mining, smelting and separation, metal smelting, magnetic material manufacturing, and rare earth secondary resource recycling," as well as the "assembly, maintenance, and upgrading of related production lines," which are now subject to export controls.

The Chinese move follows a similar regulatory clampdown in April that temporarily disrupted global supply chains until new agreements restored flows to Europe and the United States.

In a further sign of escalating tensions, Trump indicated he may abandon a planned meeting with Chinese President Xi Jinping during the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month.

“There is now 'no reason' to follow through on a planned sit-down with Chinese President Xi Jinping,” Trump said, reacting to Beijing’s latest trade maneuver.

The rare earths dispute marks a renewed flashpoint in U.S.-China relations, raising the prospect of a fresh trade war that could ripple across global markets.

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