US Imposes Additional 100% Tariff, Escalating Trade Tensions with China

• The US plans to impose a 100% tariff on Chinese imports starting Saturday (11/01)

• Market drops as China vows retaliation, stoking global disruption fears

By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto 

October 17, 2025 at 16:30 GMT+7

The United States plans to impose an additional 100% tariff on Chinese imports starting Saturday (11/01), in what officials described as a “decisive step” to counter unfair trade practices and safeguard national interests. The announcement, made by President Donald Trump, extends the administration’s ongoing pressure campaign against Beijing, adding to existing duties on billions of dollars’ worth of Chinese goods. 

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Alongside the new tariffs, the US will introduce fresh export controls targeting American-made software and technology used in advanced manufacturing. US Trade Representative Jamieson Greer stated that the timing and scope of the measures could still change depending on China’s response in the coming weeks. 

The move underscores Washington’s intent to tighten economic leverage while leaving room for negotiation ahead of high-level diplomatic engagements planned later this year.

U.S. President Donald Trump attends a bilateral meeting with China's President Xi Jinping during the G20 leaders summit in Osaka, Japan, June 29, 2019. | Source : Reuters

Financial markets responded sharply to the announcement, reflecting renewed investor anxiety over the potential fallout of an intensified US–China trade confrontation. Major indices closed lower, with the S&P 500 suffering its steepest single-day decline since April amid a broad selloff in technology and manufacturing stocks. 

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Analysts warned that the tariff escalation could strain global supply chains already disrupted by geopolitical uncertainty and rising commodity costs. Concerns have been amplified by China’s recent restrictions on rare earth exports, a critical input for electric vehicles and semiconductors. 

Market participants fear that simultaneous trade barriers on both sides could further pressure inflation and corporate margins, complicating the Federal Reserve’s policy outlook. Treasury yields fell as investors sought safe-haven assets, signaling broader risk aversion across global markets.

Containers pile up at Qingdao Port Qianwan Container Terminal in Shandong Province, China, on September 25, 2025.| Source: CNN

China’s Ministry of Commerce swiftly condemned the US decision, warning that Beijing “will take necessary countermeasures” should the tariffs take effect as planned. The ministry emphasized that the new duties violate global trade norms and would damage both economies if left unresolved. 

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Despite the growing tension, officials from both nations are still expected to meet at the upcoming APEC summit in Seoul, though the agenda and format remain fluid. Diplomats familiar with the talks said efforts to maintain dialogue continue behind the scenes, even as trust between the two sides erodes. 

Economists caution that the path toward de-escalation remains uncertain, with trade, technology access, and security concerns increasingly intertwined in a broader geopolitical contest that extends far beyond tariffs alone.

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Sources:

CNN

Indonesia Business Post

Jakarta Globe