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Escalating US-China Trade Risk: Trump Threatens 100% Tariffs on Chinese Goods
President Trump's threat to impose 100% tariffs on Chinese goods by November 1 is sparking fears of a new supply chain shock and a severe escalation in US-China trade tensions.
Photo: Jim Allen/FreightWaves
On Friday, President Donald Trump declared that the United States could impose tariffs of up to 100% on imports from China before November 1. The move marks a dangerous escalation in the US-China trade conflict and is sending ripples of uncertainty across global supply chains.
In a post on the Truth Social platform Friday, Trump indicated the tariffs would be in retaliation for new export controls on rare earth minerals and related technologies that China had announced a day earlier.
Many U.S. companies reliant on Chinese manufacturing could face soaring costs and shipping delays as they scramble to reroute orders or find alternative suppliers in Mexico, India, or Southeast Asia. Containerized imports from China—which account for roughly 40% of all inbound U.S. cargo—could plummet, leading to blank sailings, excess vessel capacity, and rate volatility.
Freight forwarding experts argue that shippers need to be proactive in addressing the tariff issue.
“Whether it’s this announcement or the additions under Section 232 a couple of weeks ago, it’s clear tariffs are here to stay,” said Ben Bidwell, senior director of customs and compliance at C.H. Robinson.
“The current environment may feel unpredictable to some, but businesses can be proactive versus reactive by building resilient supply chains: consider establishing a sourcing hierarchy, leveraging dual sourcing, exploring bonded warehouses or free trade zones, and other strategies. These are conversations we’ve had with customers for years but the current trade landscape has accelerated the occurrences, and many of our customers’ timelines.”
China remains a major U.S. trading partner and its largest supplier of goods, but it ranks behind Mexico and Canada in terms of total trade value.
So far this year, the U.S. has traded between $420 billion and $440 billion in goods with China, according to U.S. Census Bureau data. That’s down from more than $465 billion during the same period in 2024.
Top U.S. imports from China include electronics, machinery, furniture, and consumer goods, while top exports to China consist of agricultural products, aircraft, and semiconductors.
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