U.S. President Donald Trump declared his intention to enforce a 100% tariff on Chinese imports and implement export restrictions on “all essential software” as a countermeasure to China’s recent limitations on rare earth exports.
“In light of China’s unprecedented actions, I am speaking solely for the United States: starting November 1, 2025 (or possibly earlier if China takes further measures), we will introduce a 100% tariff on Chinese goods in addition to current tariffs. On that date, export controls will also be applied to all critical software,” Trump announced via Truth Social.
This declaration follows China’s decision to broaden its export limits concerning rare earth materials. These resources are crucial for global technology and manufacturing industries, with China dominating much of the worldwide market in these areas.
Trump has suggested he might cancel an upcoming meeting with Chinese President Xi Jinping planned for South Korea in about three weeks. However, this meeting was never officially confirmed by China.
The announcement represents the most significant diplomatic rift in four months and raises doubts about whether economic relations between the world’s two largest economies can continue improving.
Following Trump’s remarks, cryptocurrency markets experienced a sharp decline. Bitcoin dropped by 8.09% to reach $107,561 within an hour. Ethereum (ETH) decreased by 10.09% landing at $3,673 while Solana (SOL) plunged by 13.36% hitting $176.88.
The BTC price reached as low as $102,000 at one point during this downturn.
Chart illustrating BTC price fluctuations.
Dogecoin (DOGE) saw a steep drop of 29%, falling to $0.1663 amidst ongoing market volatility which has brought down total cryptocurrency market capitalization to approximately $2.15 trillion.
XRP’s value also decreased reaching downwards towards $1.84 but is currently holding steady around $2 at present writing time.
*This information does not constitute investment advice.*