President Donald Trump on Friday escalated tensions with Beijing by announcing a sweeping new 100 percent tariff on Chinese imports, to take effect November 1 or earlier. He also threatened to impose U.S. export controls on “any and all critical software” as a countermeasure to China’s tightening of rare earth export restrictions. 

China recently expanded export controls to include 12 rare earth elements and related processing technologies, demanding special licensing for exports - especially when intended for defense, semiconductor, or dual-use applications. Beijing has also been sending letters to nations globally, warning that China plans to impose export curbs on all production inputs tied to rare earths. 

Markets responded sharply: the S&P 500 fell ~2.7 percent amid fears of deepening trade confrontation.  Analysts warn that an intensified tariff regime plus restricted access to rare earths could strain global supply chains and provoke retaliation.