Trump announces extra 100% tariffs on China, control 'critical software' exports

US President Donald Trump announced on Friday sweeping new tariffs on China, declaring an additional 100% tariff on all Chinese goods and tighter controls on exports of critical US software, effective November 1, 2025.

Trump says the move is a direct response to what he called China’s “extraordinarily aggressive” trade tactics, especially Beijing’s new plans to tighten export controls on a wide range of products, including rare earth minerals.

The development is expected to intensify economic tensions between the world's two largest economies and exacerbate ongoing uncertainties for global markets.

What's behind Trump's latest tariffs on China

There is nothing new about a trade war between the US and China. The rivalry is brewing for years, and over the past decade, both sides have slapped tariffs and countermeasures on each other.

The US first hit Chinese imports with major tariffs back in 2018, going as high as 25% on about $360 billion worth of goods before things briefly cooled off.

Now, with this new 100% tariff on top of the existing ones, average duties will soar to around 130%, levels not seen since the peak of the trade war.

The latest round reportedly covers just about everything: electronics, machinery, home goods, and clothing, with no signs of any exemptions so far.

What pushed Trump to announce additional tariffs on Friday is Beijing's announcement of sweeping export controls on rare earth minerals and production technology, which are vital to global tech and defense industries.

The US President slammed China's actions and called them “extraordinarily aggressive” to gain leverage in international trade by restricting access to critical materials.

The new tariffs, kicking in on November 1, are meant to hit back at China’s move and safeguard US economic and national interests.

But things have heated up fast, with both Washington and Beijing trading accusations of unfair tactics, and each is hinting that more retaliation could be on the way.

Restricting software exports: Tech in the crosshairs

Interestingly, along with fresh tariffs, Donald Trump also announced export controls on what it calls “critical software,” set to take effect around the same time.

This comes weeks after China banned Nvidia chips and enforced tight customs controls in what experts a calling an artificial intelligence race between the two superpowers.

Officials haven’t spelled out exactly which types of software will be affected yet, but they have hinted it will cover advanced technologies tied to defense, AI, telecom, logistics, and high-end manufacturing.

The move echoes earlier efforts to block chip and AI tech sales to Chinese companies viewed as security threats.

The main concern is keeping sensitive American-made software, like encryption tools, design programs, and machine learning platforms, from being used to boost China’s military or industrial power.