President Donald Trump announced sweeping 100% tariffs on all Chinese goods, effective November 1, in a surprise move that has sent global markets into turmoil. The decision comes after China reportedly issued an “extremely hostile letter” threatening to impose extensive export controls on nearly every product it produces by November 2025. Trump described the plan as an “unheard of” and “moral disgrace” in international trade, accusing Beijing of orchestrating a years-long strategy to destabilize global commerce.

The president stated the U.S. would implement the tariffs “over and above any tariff they are currently paying,” while also imposing export controls on critical software. Trump’s announcement followed earlier criticism of Chinese leader Xi Jinping over restrictions on rare earth exports, which the administration claims threaten America’s economic security. The move coincides with heightened tensions ahead of an expected meeting between Trump and Xi at the APEC summit in South Korea later this month.

The financial markets reacted sharply to the news, with Bitcoin plummeting to $104,000 before recovering to approximately $112,500. U.S. stock markets were closed at the time of the announcement, but after-hours trading and cryptocurrency exchanges experienced immediate volatility. Trump’s remarks on social media emphasized a hardline stance, stating, “For every element that they have been able to monopolize, we have two.”

The administration officials described China’s actions as an attempt to gain leverage in trade negotiations, though some suggested U.S. export controls may have provoked the Chinese response. The tariffs mark a significant escalation in Trump’s ongoing trade war with Beijing, reflecting his broader strategy to counter perceived economic threats.