U.S. President Donald Trump has reignited global trade tensions after threatening to impose tariffs of up to 155% on Chinese goods starting November 1, unless Washington and Beijing reach a new trade agreement.
The remarks came Monday during a White House meeting with Australian Prime Minister Anthony Albanese, where the two leaders signed a major critical minerals agreement aimed at countering China’s dominance in global supply chains.
Trump accused China of taking advantage of the United States for years but said those days were over. “China’s paying 55 percent and a potential 155 percent come November 1 unless we make a deal,” he said.
Despite his sharp tone, Trump signaled confidence in a possible breakthrough.
He said he planned to meet Chinese President Xi Jinping later this month in South Korea during the Asia-Pacific Economic Cooperation (APEC) summit, describing the discussions as “vital for maintaining a strong U.S.-China relationship.”
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Trump’s remarks came just hours after showing a critical minerals agreement with Australia, part of a broader strategy to reduce dependence on Chinese supply chains.
The $8.5 billion deal includes joint investments in mining and processing rare earth materials, with both nations contributing $1 billion over the next six months.
The agreement aims to secure Western access to resources essential for defense, aerospace, and electric vehicle industries, areas heavily dominated by China.
The announcement quickly rippled through global markets. The combination of tariff threats and new export restrictions triggered a sell-off across equities and crypto assets.
According to data from CoinGlass, over $329.29M in crypto positions were liquidated within the past 24 hours.
Bitcoin and Ethereum led the downturn, losing $91.58M and $86.21M in liquidated positions, respectively. Bitcoin slid to around $107,800, while Ethereum dropped below $3,900, erasing earlier gains from the week.
Trump’s threat of 155% tariffs came on top of the existing 55% duties already imposed on Chinese imports, a policy he revived after returning to office earlier this year.
Before this, on October 11, Washington announced new export restrictions on advanced software and added a 100% tariff on top of existing duties, effective November 1. These moves have rattled markets, raising fears of a broader economic slowdown.
Following the announcement, financial markets reacted sharply. Over 1.66 million crypto traders were liquidated in 24 hours, erasing $19.33 billion in leveraged positions, the highest liquidation history in crypto history.
The latest escalation followed Beijing’s decision to tighten export controls on rare earth materials, which are vital to producing advanced technology. “These export controls affect virtually every product China makes,” Trump wrote on Truth Social.
China’s foreign ministry responded by warning that tariffs are “not the proper way to engage.”
The tension has already led Beijing to replace its top trade negotiator, Li Chenggang, with deputy trade representative Li Yongjie, signaling a shift in its approach to upcoming talks.
