Washington/Beijing, 10 October 2025 — The fragile balance in global trade was upended Friday after China announced broad export controls covering a wide range of goods, including critical raw materials and manufactured products. The move, described by Beijing as a measure to “protect national interests,” effectively restricts shipments to all countries, raising fears of supply chain disruptions across industries from technology to energy.
Within minutes, President Donald Trump countered with a declaration that the United States would impose an additional 100% tariff on all Chinese imports, doubling existing duties. The new tariffs are set to take effect on November 1, or sooner if China escalates further, according to Trump’s statement on his Truth Social platform.
Market and Economic Impact
The announcement triggered immediate volatility:
- Global stock markets fell sharply, with tech and manufacturing sectors leading losses.
- Cryptocurrency markets shed nearly $200 billion in value within hours, reflecting investor flight from risk assets.
- Analysts warned that the combined measures could cripple global supply chains, particularly in rare earth minerals, semiconductors, and consumer electronics, where China plays a dominant role.
Economists cautioned that the tariffs could also fuel inflation in the U.S., raising prices on consumer goods at a time when the domestic economy is already under strain from a government shutdown and slowing job growth.
The full fall out from these measures would become known in the coming days subject to developments from major economies in relation to the action by both Countries, it is however safe to say and forecast a considerable monetary loss across the globe.
Diplomatic Fallout
The escalation comes just weeks before a planned meeting between Trump and Chinese President Xi Jinping at the APEC summit in South Korea. Trump suggested the meeting may now be canceled, saying there was “no reason” to proceed under current conditions.
Other major economies, including the European Union, Japan, and India, have not yet issued formal responses. Trade experts say their reactions will be critical in determining whether the dispute remains bilateral or spirals into a global trade confrontation.
Outlook
The standoff marks the most severe rupture in U.S.–China relations since the tariff battles of 2018–2019. With both sides hardening positions, the prospect of a negotiated settlement appears remote in the short term.
For now, businesses and consumers worldwide face the prospect of higher costs, disrupted supply chains, and heightened economic uncertainty, as the world’s two largest economies lock horns in a confrontation with global repercussions.
Sources: USA Today [6]; Sky News [8]; CBS News [9]; Yahoo Finance [2].
