The Trump administration is looking at a plan to limit exports of various software-related products to China, like laptops and jet engines, as a response to China’s new restrictions on rare earth exports. This plan reflects President Trump’s earlier threat to stop “critical software” exports to China by enforcing controls on products that use U. S. software or were made with it. In a social media post on October 10, Trump stated he would impose new tariffs of 100% on shipments from China and new export controls by November 1, though he did not provide specific details.
While there are discussions about this plan, it is not guaranteed to move forward. The Trump administration is considering escalating its conflict with China, even as some officials prefer a more moderate approach. The stock market reacted negatively to this news, with declines in major indexes like the S&P 500 and Nasdaq. The White House and the Commerce Department have declined to comment on the situation.
A representative from the Chinese embassy did not specifically address the potential U. S. measures but expressed strong opposition to the U. S. applying unilateral measures and stated that China would protect its interests if the situation escalated. The proposed export controls could significantly disrupt global trade with China, especially in technology sectors, and could adversely affect the U. S. economy if fully enacted.
Trump’s announcement came shortly before a meeting with Chinese President Xi Jinping and follows China’s expansion of export controls on rare earth elements, crucial for tech manufacturing. Trump’s prior tariffs and restrictions on China have fluctuated over time, and he has recently indicated a desire to help China rather than harm it. U. S. Treasury Secretary Scott Bessent is set to meet with Chinese officials in preparation for the upcoming Trump-Xi meeting.
With information from Google
