US President Trump threatens a 155% tariff on China starting November 1, escalating trade tensions ahead of APEC talks with Xi Jinping.
Washington | October 21, 2025 | The Interview Times — US President Donald Trump has escalated trade tensions with China by threatening to impose a tariff on China of up to 155 percent on Chinese goods starting November 1, citing what he called “unfair trade practices.” The announcement comes just ahead of the Asia-Pacific Economic Cooperation (APEC) summit, where Trump will meet Chinese President Xi Jinping.
During a joint press conference at the White House with Australian Prime Minister Anthony Albanese, Trump revealed that China is already paying “tremendous amounts” under existing 55 percent tariffs. “China’s paying 55 percent and a potential 155 percent come November 1 unless we make a deal,” Trump said, criticizing Beijing’s trade posture as “extraordinarily aggressive.” The press conference also unveiled an $8.5 billion pact between the US and Australia focused on defense and critical minerals cooperation.
Must Read: China’s Rare Earth Export Restrictions: A Global Supply Chain Crisis for Permanent Magnets
Escalation Ahead of APEC Summit
The looming tariff on China comes just days before Trump and Xi are scheduled to meet in Gyeongju, South Korea, on October 31 and November 1. Analysts say the summit could determine the trajectory of U.S.-China trade relations in the coming years. The threat of a tariff on China has sent shockwaves through global markets, with investors closely monitoring potential economic fallout.
Despite his tough stance, Trump maintained that he has a “very good relationship” with Xi and expressed optimism about negotiating a “fair and great trade deal.” He also revealed plans for a visit to China in early 2026, signaling ongoing diplomatic engagement despite rising tensions.
China’s Rare Earth Countermeasures
In response to the proposed tariff on China, Beijing has tightened export controls on rare earth metals, essential for electric vehicles, smartphones, and defense systems. The new rules require government approval for any product containing more than 0.1 percent of Chinese rare earths, extending China’s influence over global supply chains.
China controls approximately 70 percent of global rare earth mining and 90 percent of processing capacity, giving it substantial leverage in the ongoing trade dispute. Analysts note that these measures echo the U.S. foreign direct product rule, which restricts China’s access to advanced semiconductor technology.
A Chinese commerce ministry official stated, “China does not seek a trade war but will not be intimidated by economic coercion.” Meanwhile, U.S. Treasury Secretary Scott Bessent accused Beijing of using rare earths as “an economic weapon against the free world,” further escalating tensions over the tariff on China.
Must Read: Historic Milestone: Sanae Takaichi Becomes Japan’s First Female Prime Minister
Global Implications of a Tariff on China
Experts warn that a 155 percent tariff on China could have severe consequences for global markets, disrupting supply chains and driving up consumer prices worldwide. Sectors such as technology, automotive, and defense—already affected by rare earth shortages—are expected to feel the most significant impact.
The looming tariff on China highlights a new phase of trade brinkmanship between the world’s two largest economies, with global economic stability hanging in the balance. Both countries continue to signal willingness for dialogue, but the escalating stakes underscore how critical the upcoming talks at the APEC summit will be.
With the November 1 deadline approaching, the tariff on China issue is likely to dominate headlines and global economic discussions in the coming weeks. Observers note that the world could witness major shifts in trade policies depending on the outcome of the Trump-Xi meeting, making this one of the most consequential trade confrontations in recent history.