Trump’s promised 100% tariff on China is escalating the trade war to new, turbulent levels

Core Viewpoint - The trade war between the U.S. and China is escalating, particularly following China's announcement to tighten control over rare earth mineral exports, prompting President Trump to threaten a new 100% tariff on Chinese goods [1][2][4]. Market Impact - U.S. markets reacted negatively to the tariff threats, with the Dow Jones Industrial Average dropping 876 points, the S&P 500 falling 2.7%, and the Nasdaq composite closing down 3.6% [5]. - Tech stocks were particularly affected, with companies like Nvidia, Amazon, and Tesla experiencing declines of around 5% [5]. Trade Dynamics - The renewed trade tensions stem from China's control over rare earth minerals, which are essential for technology manufacturing and military equipment [4]. - Trump's comments suggest that the U.S. may consider further countermeasures, including limiting exports of critical software [2][3]. Analyst Perspectives - Analysts express concern that the new trade restrictions could significantly impact the U.S.'s access to necessary materials for technology and military applications [4]. - Some analysts view the current market turbulence as a potential buying opportunity for companies in semiconductors, software, and AI sectors, despite the ongoing tensions [5].