The global trade war returned with force on Friday as President Donald Trump announced new tariffs that will raise taxes on Chinese imports to 130%. Starting November 1 — or sooner — the U.S. will impose an additional 100% tariff on top of the existing 30%.

Trump justified the move in response to Beijing’s new export controls on rare earth elements, crucial for global tech production. He also suggested that a planned meeting with President Xi Jinping in South Korea could be canceled.

Markets reacted sharply. The Dow Jones Industrial Average fell 878 points (-1.9%), the S&P 500 dropped 2.7%, and the Nasdaq Composite tumbled 3.5%, reflecting fears of a renewed trade conflict between the world’s two largest economies.

The United States and China remain deeply economically intertwined. China is a top supplier of electronics, apparel, and furniture to the U.S., while the American market is key for Chinese exports. Although Trump has often threatened tariffs as a political tool, in previous rounds he softened measures to avoid hurting domestic industries, particularly in technology.

Friday’s announcement ends a brief period of relative calm, during which tariffs had been reduced to 30% in the U.S. and 10% in China. Now, export controls on critical minerals and tech restrictions have pushed both nations back toward confrontation.

If this escalation continues, analysts warn it could slow global economic growth and disrupt supply chains worldwide. A pending Supreme