The new 100% U.S. tariffs on Chinese goods—set to begin November 1, 2025—are escalating trade tensions and already impacting both China’s economy and American farmers, especially soybean producers.
Here’s a breakdown of the key effects:
Export Slowdown: The tariffs target a wide range of Chinese imports, raising total duties to as high as 130% on some goods. This is expected to significantly reduce Chinese exports to the U.S., especially in sectors like electronics, furniture, and machinery.
Economic Retaliation: China, which controls about 70% of global scarce resource production, has responded by expanding export controls on rare earth elements and refining technologies—materials critical for semiconductors, EVs, and defense systems.
Tech Sector Pressure: The U.S. is also imposing export controls on “any and all critical software,” which could disrupt Chinese access to essential U.S. technologies.
Global Trade Fallout: China’s aggressive export curbs have drawn criticism from multiple countries, not just the U.S., potentially isolating Beijing further in global trade networks
🌾 Impact on U.S. Farmers
Soybean Sales Halted: In retaliation, China has stopped purchasing U.S. soybeans, a major blow to American farmers who rely heavily on Chinese demand Yahoo Finance The Hill.
Market Volatility: The announcement triggered a sharp drop in U.S. stock markets, reflecting broader economic uncertainty that could affect agricultural commodity prices The Hill.
Long-Term Risk: If the trade war persists, U.S. farmers may lose long-term market share in China to competitors like Brazil and Argentina, who are eager to fill the gap.
Trump’s announcement: On October 10, 2025, Trump announced on his Truth Social platform that the new 100% tariff would be imposed “over and above any Tariff that they are currently paying”.
Restricting Resources: The announcement came in direct response to China’s new export restrictions on rare earth minerals, which are critical for manufacturing advanced technology like semiconductors, batteries, and military equipment.
Impact on existing tariffs: The new 100% tariff would be in addition to existing tariffs, which have been significant for several years. For some goods, this could push the effective tariff rate even higher.
Other actions: The White House also stated that it would impose export controls on “any and all critical software” starting on November 1.
Separately, Trump has also proposed other significant tariffs:
100% tariff on foreign-made films: In September 2025, Trump pledged a 100% tariff on movies made outside the U.S., claiming the film business was “stolen” from the country.
General import tariffs: Throughout 2025, Trump has implemented or proposed other tariffs on imports from China and other countries, intensifying the trade conflict.
📉 Market and political reactions
Market volatility: The announcement of the China tariff caused significant market uncertainty, leading to a stock market sell-off on October 11 and a major liquidation event in the cryptocurrency market. Markets recovered partially after Trump posted conciliatory messages, stating “it will all be fine!”.
China’s response: Beijing has called the tariff threat a “double standard” and vowed to take “corresponding measures” if the U.S. proceeds.
Mixed signals on diplomacy: The new tariffs have complicated diplomatic relations. Trump initially suggested he might cancel an upcoming meeting with Chinese leader Xi Jinping but later walked back the statement.
Low-income American households, U.S. farmers, and industries reliant on imported goods—especially apparel, furniture, and automotive components—are among those hurt most by Trump’s tariffs in 2025.








