Additional 100% Tariff: U.S., China Must Avoid Futile Trade War

Editorial

17:13 JST, October 12, 2025

Trade friction between the United States and China, which had been in a relative lull, has begun to reignite. This might be part of negotiating tactics related to tariff talks, but if their confrontation deepens, it will inevitably deal a significant blow to the global economy.

Both the United States and China must exercise restraint to prevent their conflict from descending into futile retaliation between the two.

U.S. President Donald Trump announced Friday that the United States would impose an additional tariff of 100% on imports from China, starting Nov. 1. He said the move is in retaliation for China’s stricter export controls on rare earths.

Trump expressed his anger, saying, “China has taken an extraordinarily aggressive position” on trade. He also hinted at canceling a meeting with Chinese President Xi Jinping that is scheduled to be held on the sidelines of a conference in South Korea, which is slated to start at the end of this month.  

The trade friction between the United States and China had been in a lull since the two countries agreed to significantly lower tariffs in May. On Friday, however, the Dow Jones Industrial Average dropped 878 points.

The Nikkei 225 futures also fell nearly 3,000 points. The sudden resurgence of the U.S.-China conflict has triggered serious concern.

Rare earths are used in a wide range of products, including automobiles and semiconductors. China accounts for about 70% of global rare earth production and about 90% of the processing. The new restrictions announced by the Chinese government on Thursday are extremely stringent, with Beijing taking advantage of its dominant position.

U.S. companies and other entities must obtain a license from Chinese authorities to export products containing even small amounts of Chinese-produced rare earths. Licenses reportedly will be denied to companies with ties to foreign militaries. Exports of rare earths for military purposes will be prohibited in principle.

Rare earths are essential to produce fighter jets, submarines and missiles, among other equipment. The new restrictions are highly likely to have an enormous impact on supply chains for the U.S. defense industry.

Xi, who is scheduled to meet with Trump, is believed to be aiming for concessions from him in tariff negotiations. Meanwhile, the U.S. side appears to perceive China’s new export controls as a serious challenge to its national security.

Both the United States and China need to carefully communicate with each other to prevent their conflict from escalating further.

After announcing plans for reciprocal tariffs in April, the United States raised its additional tariffs on Chinese goods to 145%, while Beijing increased its duties on U.S. imports to 125%. However, in consideration of the economic disruption and other factors, both sides made concessions in May by significantly reducing their tariffs.

Last month, the two countries also agreed on a framework for transferring the Chinese ownership of U.S. operations of the video-sharing app TikTok to the U.S. side.

The United States and China should explore means for a breakthrough, based on their discussions in the past.

(From The Yomiuri Shimbun, Oct. 12, 2025)