In a dramatic escalation of commerce hostilities, US President Donald Trump on 10 October 2025 introduced a sweeping new measure: an extra 100% tariff on all Chinese language imports. The tariffs, which can come into impact from 1 November, or sooner if Beijing proceeds with what Trump known as “aggressive” commerce insurance policies, increase the overall US tariff on Chinese language items to a staggering 130%.
The announcement, which coincides with new American export controls focusing on important software program, marks some of the aggressive commerce actions taken in latest US historical past.
In a press release posted on Fact Social, Trump described China’s export restrictions as a “hostile act” requiring a powerful American response.
“It has simply been realized that China has taken an awfully aggressive place on commerce… efficient November 1, 2025, they plan to impose large-scale export controls on just about each product they make,” Trump wrote.
The transfer has deepened already fraught relations between the world’s two largest economies, casting uncertainty over the upcoming Asia-Pacific Financial Cooperation (APEC) Summit in South Korea, which each Trump and Chinese language President Xi Jinping are anticipated to attend.
Simply days after a reported telephone name between Trump and Xi wherein they mentioned the progress of a possible commerce deal, significantly round the way forward for TikTok, Trump informed reporters there was “no purpose to fulfill” with the Chinese language chief on the summit, citing Beijing’s “very hostile” actions. He clarified that no formal cancellation of the assembly had been made.
Instant Shockwaves Throughout International Markets
The brand new tariffs are anticipated to ship shockwaves via world provide chains, significantly in high-impact sectors akin to expertise, electrical automobiles, and defence. In line with a Reuters report, analysts are warning of widespread disruption, whereas economists warning that the 100% tariff might result in a spike in world costs, given China’s function as a central provider of each industrial and client items.
The influence was quick. US inventory indices took a pointy tumble, with The Wall Road Journal reporting that the Dow Jones Industrial Common plunged almost 900 factors. Buyers now worry a protracted commerce warfare and a deeper slowdown in world financial development.
Who Will Bear Brunt?
A number of nations are more likely to endure collateral harm from the US-China commerce escalation. Mexico and Canada, two of America’s largest buying and selling companions, might see financial disruption on account of their sturdy manufacturing ties with each nations.
In Asia, economies like South Korea, Japan, and Singapore, with deep integration into world provide chains, are additionally weak. Industries reliant on Chinese language parts or US markets, akin to electronics, clear vitality, and superior manufacturing, might face main setbacks.
A Silver Lining For Indian Exporters?
Amid the worldwide nervousness, India sees a possible silver lining. The Federation of Indian Export Organisations (FIEO) believes the brand new tariffs might increase Indian exports to the US, which reached USD 86 billion within the 2024-25 fiscal 12 months.
“We could acquire from this escalation,” mentioned FIEO President S C Ralhan in a press release to PTI. “Now this 100 per cent extra tariff on Chinese language items will give us an higher edge,” a textile exporter informed the company.
They added that the shift in demand away from Chinese language items might unlock “big export alternatives” for Indian producers, significantly in sectors the place India is already aggressive, akin to textiles, prescription drugs, and IT providers.
As commerce tensions escalate, the world watches intently, not simply to see how China responds, but in addition to evaluate which international locations can pivot rapidly sufficient to adapt to a brand new period of financial realignment.
(With inputs from businesses)