The White House is considering banning exports to China of all items that were made with or contain U.S.-made software in response to China’s announcement of rare earth export controls. According to Reuters, this isn’t the only plan the Trump administration is considering, but if implemented, it would follow through on the president’s threat of a 100% tariff and a ban on critical software as a response to Beijing’s perceived escalation. Although there is no final decision yet on whether Washington will push through with this comprehensive ban, it could heighten the ongoing trade war between the two rivals, especially as almost everything — from consumer devices to industrial equipment — is made with or contains American software.
“I will confirm that everything is on the table,” U.S. Treasury Secretary Scott Bessent said in a statement to reporters. “If these export controls — whether it’s software, engines, or other things — happen, it will likely be in coordination with our G7 allies.” However, other government officials favor a less drastic approach, especially as implementing a complete software ban would be incredibly difficult. Former trade official Emily Kilcrease said that such a move could also lead to unintended consequences for U.S. industry. “You would hope they are only putting threats on the table that they would carry out and stick with,” Kilcrease said to Reuters.
