On October 10, 2025, President Donald Trump announced plans to impose a 100% tariff on imports from China, a move prompted by China's recent tightening of export rules for rare earth materials. These materials are crucial for numerous industries, including automotive and technology, making the tariff threat particularly impactful. Following Trump's announcement, financial markets reacted negatively, with the S&P 500 dropping 2.7%, marking its steepest decline since April. The trade relationship between the US and China has been fragile, with previous agreements to reduce tariffs now at risk. Experts suggest that China's actions may be a strategic maneuver to influence upcoming negotiations, particularly concerning technology and defense industries. The new export rules will not take effect until December, leaving room for potential negotiations, although the likelihood of a Trump-Xi meeting appears diminished.