---
title: "Trump threatens to significantly increase tariffs on China, and the US stock market plummets in response"
description: "Former U.S. President Donald Trump posted on the social media platform Truth Social on Friday, threatening to implement \"massive tariff increases\" on goods imported from China, citing China's plans to"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/260665590.md"
published_at: "2025-10-10T16:04:04.000Z"
---

# Trump threatens to significantly increase tariffs on China, and the US stock market plummets in response

> Former U.S. President Donald Trump posted on the social media platform Truth Social on Friday, threatening to implement "massive tariff increases" on goods imported from China, citing China's plans to impose new restrictions on rare earth exports. In his post, Trump stated that if Beijing advances export restrictions, the U.S. will "take the most severe economic countermeasures in history." Analysts believe this statement indicates a renewed escalation in U.S.-China trade tensions, quickly dampening market expectations for improved relations between the two countries. As a result of the news, U.S. stock markets fell sharply. The Nasdaq dropped over 2%, the S&P 500 index fell 1.6%, and the Dow Jones Industrial Average declined by more than 1%. Investors are concerned that if the U.S.-China trade dispute escalates again, it could further impact global supply chains and bring new uncertainties to an already sluggish world economy. Market observers point out that Trump's threats regarding rare earths are not only symbolic; rare earths are crucial raw materials for key industries such as electric vehicles, batteries, and semiconductors, making them a core area of the U.S.-China technological and industrial rivalry. If substantial friction occurs in this area, the global high-tech manufacturing sector could face a chain reaction

According to the Zhitong Finance APP, U.S. President Donald Trump posted on the social media platform Truth Social on Friday, threatening to implement "massive tariff increases" on goods imported from China, citing China's plans to impose new restrictions on rare earth exports.

In his post, Trump stated that if Beijing advances export restrictions, the U.S. will "take the most severe economic countermeasures in history." Analysts believe this statement indicates a renewed escalation in U.S.-China trade tensions, quickly dampening market expectations for an improvement in relations between the two countries.

As a result of the news, U.S. stock markets fell sharply. The Nasdaq dropped over 2%, the S&P 500 index fell by 1.6%, and the Dow Jones Industrial Average declined by more than 1%. Investors are concerned that if the U.S.-China trade dispute escalates again, it could further impact global supply chains and bring new uncertainties to an already sluggish world economy.

Market observers point out that Trump's threats regarding rare earths are not only symbolic; rare earths are crucial raw materials for key industries such as electric vehicles, batteries, and semiconductors, making them one of the core areas of the U.S.-China technological and industrial competition. If substantial friction occurs in this area, the global high-tech manufacturing sector could face a chain reaction

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.