The S&P 500 dropped 2.71 percent, while the Dow Jones Industrial Average dipped about 878 points and the NASDAQ Composite slid 3.58 percent by the Wall Street closing bell at 4 p.m. ET Friday.<\/p>\n
Stocks had been dropping all day<\/a> after Trump announced in a lengthy Truth Social post mid-morning a \u201cmassive increase of Tariffs on Chinese products,\u201d to \u201cfinancially counter\u201d the country\u2019s new export controls on rare earth minerals. <\/p>\n \u201cSome very strange things are happening in China!\u201d Trump said. \u201cThey are becoming very hostile, and sending letters to Countries throughout the World, that they want to impose Export Controls on each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it\u2019s not manufactured in China.\u201d<\/p>\n In a Truth Social post shortly before 5 p.m. ET Friday, Trump announced the whopping 100 percent tax, which would be \u201cover and above any Tariff that they are currently paying,\u201d as well as American export controls on \u201cany and all critical software\u201d \u2014 both of which would begin on November 1, \u201cor sooner, depending on any further actions or changes taken by China.\u201d<\/p>\n open image in gallery<\/p>\n President Donald Trump has sent the market tumbling after escalating his trade war with China by threatening a 100 percent tariff \u2018over and above\u2019 current rates for Beijing (Tasos Katopodis\/Getty Images) open image in gallery<\/p>\n The Dow Jones Industrial Average dipped about 878 points by the closing bell at 4 p.m. ET Friday (Google)<\/p>\n The Independent has reached out to the White House for more details on the tariff increase. <\/p>\n China\u2019s Ministry of Commerce announced Thursday overseas exporters need to get an export license for items that contain more than 0.1 percent of rare earths from China or are manufactured using the country\u2019s rare earth extraction or refining technology to \u201csafeguard national security and interests.\u201d<\/p>\n Trump said Friday morning Washington\u2019s relationship with Beijing had been \u201cvery good\u201d over the last six months, \u201cthereby making this move on Trade an even more surprising one.\u201d<\/p>\n Tensions between the two nations reached a boiling point in April when Trump imposed sweeping tariffs<\/a> on both enemies and allies, hitting China hard with a 34 percent tariff on imported goods. <\/p>\n open image in gallery<\/p>\n Tensions between Washington and Beijing reached a boiling point in April when Trump imposed sweeping tariffs on both enemies and allies, hitting China hard (Chip Somodevilla\/Getty Images)<\/p>\n China then retaliated with tariffs on imported American goods, and the two countries entered a tit-for-tat tariff war, climbing well beyond 100 percent levies on imported goods from each nation. <\/p>\n![\"President](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/10\/GettyImages-2239376288.jpg\")
<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/10\/stock-market.jpeg\")
<\/p>\n![\"Tensions](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/10\/Trump.jpeg\")
<\/p>\n