#What Happened
The United States has confirmed new 100% tariffs on Chinese goods effective November 1, escalating trade tensions between the world’s two largest economies. The move follows China’s announcement of expanded export controls on rare earth materials, which will be phased in beginning in November and December. In response, Beijing has sanctioned some firms tied to U.S. interests and warned further measures may follow.
#Why It Matters
The deepening trade conflict threatens to disrupt global supply chains, increase costs for manufacturers, and unsettle companies reliant on US–China trade. China’s exports to the U.S. fell by over 25% in September year-on-year, while China points to rising trade with other markets as a partial offset. Investors are weighing the potential for prolonged volatility as tariffs and export controls reshape global trade flows.
#What to Watch Next
Markets will focus on how rapidly and strictly both sides enforce their new measures in November. Additional Chinese retaliation or further U.S. export restrictions could deepen the conflict. Key signals include timing of export-control implementation, Trump–Xi diplomacy, and statements from the U.S. Treasury and Commerce.
#Quick Take
The US–China trade war is entering a sharper phase as both sides expand tariffs and trade barriers. Market volatility is expected to persist in the weeks ahead.
Broader Market Angle
Trade-sensitive sectors such as semiconductors, advanced materials, and electronics are likely to be hit hardest. While U.S. equities have shown some recovery in response to earlier policy signals, Chinese markets remain under pressure, reflecting investor unease about the deepening confrontation.