Trump threatens 100% tariff on China imports over rare earth controls

President Donald Trump on Friday threatened to impose a 100 percent tariff on all Chinese imports in response to Beijing's newly expanded export controls on rare earth elements, setting off sharp market swings and a swift diplomatic exchange that has left the outlook for upcoming U.S.-China talks uncertain. Beijing replied over the weekend by urging negotiations rather than threats and warning it would take corresponding measures if Washington moved forward.

Trump announced the proposed levies and new U.S. export controls on critical software to take effect on November 1, citing Chinese restrictions on rare earth exports as the provocation. Rare earth elements are used across advanced manufacturing and military systems, and China accounts for about 70 percent of global rare earth mining and roughly 90 percent of processing capacity. U.S. officials and allies have cited those concentrations as a strategic vulnerability.

China's Commerce Ministry published a statement saying it did not seek a tariff war but was not afraid of one and called for disputes to be resolved through dialogue. The ministry said export licenses would be issued for legitimate civilian uses while noting the...