Trump’s 100% tariff on China threatens a new supply chain shock

President Donald Trump announced Friday that the United States may impose tariffs of up to 100% on imports from China by November 1, marking an escalation in the trade conflict between the United States and China and increasing uncertainty across global supply chains.

In a Social truth After Friday, Trump said the tariffs were in response to new export controls imposed by China the previous day on rare earth minerals and related technologies.

Many American companies that rely on Chinese manufacturing may face skyrocketing costs and shipment delays as they seek to redirect orders or find alternative suppliers in Mexico, India or Southeast Asia. Container imports from China — nearly 40% of all U.S. inbound shipments — could decline, leading to empty sailings, idle ship capacity, and price volatility.

Shipping agents said shippers need to be proactive when dealing with tariffs.

“Whether it is this announcement or the Section 232 additions two weeks ago, it is clear that tariffs are here to stay,” said Ben Bidwell, senior director of customs and compliance at the Bank of England. C. H. Robinson.

“The current environment may seem unpredictable to some, but companies can be proactive rather than reactive by building resilient supply chains: consider creating sourcing hierarchies, leveraging dual sourcing, exploring bonded warehouses or free trade zones, and other strategies. These are conversations we have had with customers for years but the current business landscape has accelerated events, and many Our clients’ schedules.”

China remains a major trading partner of the United States and the largest supplier of goods to the United States, but it ranks behind Mexico and Canada in total trade volume.

The United States has traded roughly $420 billion to $440 billion in goods with China since the beginning of the year, down from more than $465 billion during the same period in 2024, according to Census Bureau data.

Major US imports include electronics, machinery, furniture, and consumer goods, while the most important exports to China are agricultural products, aircraft, and semiconductors.

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