Introduction
The United States announced plans to impose an additional 100% tariff on imports from China, potentially taking effect as early as November 1, 2025. The proposed measure—intended as a response to China’s new restrictions on rare earth exports—would effectively raise the average tariff rate on Chinese goods to around 130%, marking one of the most significant escalations in recent U.S.–China trade tensions. At the time of the announcement, no official implementing documents had been issued, leaving the policy’s timing and scope uncertain while negotiations continued between the two governments.
For further background and details, please see our previous newsletter: The 100% Tariff Threat: What It Means for U.S.–China Supply Chains
Recent Development
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On October 17, President Trump stated that a 100% tariff “is not sustainable” but reaffirmed the plan unless China modifies its export restrictions [1].
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Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held a virtual meeting the same day on October 17, described by both sides as “frank and detailed” [2]. They are expected to meet in person in Kuala Lumpur during the week of October 24, ahead of a potential Trump–Xi meeting at the APEC summit in South Korea [3].
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Global markets have remained volatile; the S&P 500 index fell 2.7 percent following the announcement and later stabilized as news of renewed talks emerged [4].
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On October 20, the United States and Australia signed a Critical Minerals Framework allocating roughly US $3 billion to develop rare-earth and other critical-mineral supply chains outside China [5].
Legal and Procedural Context
According to publicly available trade data, a comprehensive 100 percent tariff would apply under the authority of the Trade Expansion Act of 1962 [6] and the Trade Act of 1974 [7], both of which allow presidential discretion to adjust tariff rates on national-security or reciprocity grounds. The U.S. Supreme Court is also scheduled to hear arguments this term regarding the scope of executive power in tariff implementation [8], a proceeding that could clarify future limits on unilateral tariff actions.
Economists have noted that previous tariff increases between 2018 and 2020 resulted in higher import prices and downstream cost pressures for consumers [9]. Whether the pending 2025 measure will follow the same path will depend on its implementation and duration, which remain undetermined.
Conclusion
As of October 21, 2025, the proposed 100 percent tariff remains a volatile policy measure pending further negotiation and possible administrative action. Stakeholders should continue to track official notices, diplomatic statements, and judicial proceedings to determine the eventual scope and timing of implementation.
DeHeng Law Offices will continue to monitor U.S.–China trade policy and related legal developments and will provide factual updates as new official information becomes available.
Cited
[1] https://apnews.com/article/trump-china-tariffs-trade-rare-earths-6432313cca9be9adf1f378f9650fc36a
[2] https://www.reuters.com/world/china/trump-says-100-tariffs-china-not-sustainable-2025-10-17/
[3] US-China trade talks planned next week in Malaysia as Trump plays down tariffs | The Straits Times
[4] https://www.cbsnews.com/news/stocks-up-dow-jones-djia-sp500-trump-china-tariffs/
[6] https://uscode.house.gov/statutes/pl/87/794.pdf
[7] https://www.govinfo.gov/content/pkg/COMPS-10384/pdf/COMPS-10384.pdf
[8] https://www.forbes.com/sites/taxnotes/2025/10/21/trumps-tariffs-on-trial-supreme-court-preview/
