Washington — The United States has announced plans to impose 100% tariffs on a broad range of Chinese goods, effective November 1, 2025, in response to China’s recent export controls on rare earth elements. These elements are critical for electronics, renewable energy, and defence industries.

Key details:

• The proposed tariffs will cover technologies, machinery, and other high-value industrial inputs.
• In addition to tariffs, new export restrictions on certain software and digital tools are being considered as retaliation.
• The decision has triggered sharp reactions in global markets, with US equities and Asian markets showing heightened volatility.

Impact:

• Many global supply chains dependent on rare earths may face disruptions, increased costs, or rerouting.
• Companies in tech and automotive sectors (in US, EU, and Asia) will need to adjust procurement and sourcing strategies.
• Import-reliant industries in developing countries could be especially hard hit by rising prices and trade restrictions.

Outlook:

• Diplomatic negotiations ahead of summits may attempt to reduce friction.
• Global firms may increase diversification of supply origins (e.g., sourcing rare earths from alternative countries).
• Monitoring from trade bodies (WTO, etc.) may result in trade dispute filings or policy revisions.