US President Donald Trump has said he would impose an additional 100% tariff on imports from China starting next month. In his social media post, Trump indicated that the U.S. would also enforce export controls on critical software. His comments came after China tightened its export rules for rare earths, a move Trump called 'very hostile,' claiming it illustrates China's attempts to hold the world captive. He even hinted at potentially pulling out of an anticipated meeting with Chinese President Xi Jinping, stating his uncertainty about whether it would proceed. Following these statements, the S&P 500 saw its most significant drop since April, closing down 2.7%. Currently, China is a leading producer of rare earth elements essential for various technologies, including smartphones and electric vehicles. Trump's mention of tariffs is escalating concerns among U.S. firms reliant on these materials, previously forcing companies like Ford to halt production temporarily. As tensions rise, China has initiated a monopoly investigation into U.S. tech firm Qualcomm, potentially stalling its acquisition of another chipmaker and implementing new port fees on vessels associated with the U.S. Despite the fragile state of trade relations, experts believe there may still be opportunities for negotiation, particularly as China's new export rules won't take effect until December.