Washington: US President Donald Trump has announced plans to impose an additional 100% tariff on imports from China starting next month, escalating the ongoing trade tensions between the two global economic powerhouses. In a social media post, Trump also mentioned potential export controls on critical software.

According to BBC, Trump’s announcement comes in response to Beijing’s recent move to tighten export rules on rare earths, critical components used in technology and manufacturing. China, a dominant player in the production of these materials, has faced criticism from Trump, who accused the country of becoming “very hostile” and attempting to hold the world “captive.”

The heightened tariff threat follows a series of retaliatory measures from both countries. Earlier this year, China’s tightening of rare earth export controls drew protests from US firms heavily reliant on these materials, with companies like Ford temporarily halting production. Furthermore, China has launched a monopoly investigation into Qualcomm, a major US tech firm, and introduced new port fees for US-affiliated ships.

The US-China trade relationship has been fragile, with both sides previously agreeing to drop significant tariffs to revive trade. However, recent developments suggest a renewed escalation. Talks between US and Chinese officials have been ongoing, covering topics such as TikTok and advanced technology trade, with a summit in South Korea expected this month.

Experts like Jonathan Czin from the Brookings Institution suggest that China’s recent actions aim to influence upcoming negotiations. Czin notes that China is likely unafraid of US retaliation, believing it has a higher tolerance for economic pain. Additionally, Gracelin Baskaran from the Center for Strategic and International Studies highlights the seriousness of China’s export rules targeting defense manufacturers, urging the US to negotiate due to limited options in a tense geopolitical climate.

While a meeting between Trump and Chinese President Xi Jinping seems unlikely at present, Baskaran remains hopeful for future negotiations, as China’s new rules are not set to take effect until December. The unfolding situation continues to hold significant implications for global trade and economic stability.