Trump threatens to impose additional 100% tariff on China
1 hour ago
Natalie ShermanBusiness reporter

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Getty Images Chinese President Xi Jinping and U.S. President Donald Trump attend a welcoming ceremony November 9, 2017 in Beijing, China. Getty Images
Trump visited China in his first term
President Donald Trump has threatened to pull out of an expected meeting with his Chinese counterpart Xi Jinping, signalling a flare-up in trade tensions between the two economic giants that sent shares in the US tumbling.
In a post on social media, Trump hit back at Beijing's move earlier this week to tighten its rules for exports of rare earths, accusing China of "becoming very hostile" and trying to hold the world "captive".
He said he saw "no reason" to meet with President Xi later this month, and later on Friday threatened an additional 100% tariff on Chinese goods as well as export controls on "critical software".
The new measures against China will take effect on 1 November, Trump said.
Financial markets dropped in the wake of Trump's remarks, with the S&P 500 closing down 2.7%, its steepest fall since April.
China dominates production of rare earths and certain other key materials, which are key components in cars, smartphones and many other items.
The last time Beijing tightened export controls - after Trump raised tariffs on Chinese goods early this year - there was an outcry from many US firms reliant on the materials. Carmaker Ford even had to temporarily pause production.
In addition to tightening rules for rare earth exports, China has opened a monopoly investigation into the US tech firm Qualcomm that could stall its acquisition of another chipmaker.
Although Qualcomm is based in the US, a significant portion of its business is concentrated in China.
Beijing has also said it will charge new port fees to ships with ties to the US, including those owned or operated by US firms.
"Some very strange things are happening in China!" Trump wrote in a post on social media on Friday. "They are becoming very hostile."
The US and China have been in a fragile trade détente since May, when the two sides agreed to drop triple-digit tariffs on each others' goods that had nearly stopped trade between the two countries.
The move left US tariffs on Chinese goods facing an added 30% levy compared with the start of the year, while US goods entering China face a new 10% tariff.
Officials have held a series of talks since then on matters including TikTok, agricultural purchases, and the trade of rare earths and advanced technology like semiconductors.
The two sides were expected to meet again this month at a summit in South Korea.