China’s rare earth curbs trigger U.S. tariff threats, market rout
China has upgraded its rare earth export controls to target the semiconductor sector, marking the first time it has restricted the materials based on end-use in a move that mirrors U.S. technology export rules. The move drew a sharp reaction from the U.S., with President Donald Trump on Oct. 10 threatening to impose 100% tariffs on Chinese goods from November and new export controls on key software products. The escalation triggered the worst single-day performance for U.S. stocks in six months, with the Dow Jones Industrial Average falling 1.9%, the S&P 500 down 2.7% and the Nasdaq Composite plunging 3.6%. U.S. WTI crude futures fell 5.3% to $58.24 a barrel. A U.S. think tank described the new controls as China’s most influential move against the U.S. defense sector to date.
