ZGXT(SZ:000831) Sou Hu Cai Jing·2025-10-13 16:50Core Viewpoint - The trade conflict between the U.S. and China has escalated, with the U.S. imposing a 100% tariff on Chinese goods in response to China's export controls on rare earth materials, significantly impacting global supply chains and financial markets [2][4][12]. U.S. Tariff Announcement - On October 10, 2025, President Trump announced a 100% additional tariff on all Chinese imports effective November 1, alongside export controls on key software [2][7][8]. - This decision was a direct response to China's rare earth export control measures announced on October 9 [2][4]. China's Rare Earth Export Controls - China's Ministry of Commerce issued two announcements on October 9, 2025, implementing export controls on rare earth materials, affecting items with a Chinese component of 0.1% or more, and technologies related to rare earth extraction and processing [4][5]. - The measures are framed as necessary for national security and compliance with international obligations, following a history of concerns regarding the military use of Chinese rare earth materials [5][19]. Market Reactions - Financial markets reacted negatively, with the Dow Jones Industrial Average dropping nearly 900 points and semiconductor stocks declining over 5% following the announcements [2][15]. - The S&P 500 index fell by 2.7%, marking its largest single-day drop since April [15][22]. Global Economic Implications - The renewed trade conflict is expected to disrupt global supply chains, particularly in the semiconductor and technology sectors, with companies like Nvidia and AMD experiencing significant stock price declines [15][21]. - The situation poses a risk of broader economic repercussions, as both nations' actions could lead to a "mutually assured destruction" scenario, affecting global economic stability [21][24]. Future Outlook - There remains potential for negotiation, as Trump indicated that tariffs could be reconsidered before the November 1 deadline, and a meeting with Chinese leaders is not entirely ruled out [17][22]. - The next three weeks are critical, with the U.S. tariff implementation date coinciding with China's full enforcement of rare earth controls on December 1 [23][24].