What happened?
President Trump threatened to impose tariffs of up to 155% on Chinese goods starting November 1 unless a new trade deal is reached. He also signed an $8.5 billion critical minerals agreement with Australia to reduce dependence on Chinese supply chains. The combination of tariff threats and export controls sparked immediate market turmoil, including large crypto liquidations and equity sell-offs.
Who does this affect?
U.S. and Chinese exporters, importers, and manufacturers that rely on cross‑border parts and rare earths face the biggest direct impact. Investors and traders—especially those using leverage in crypto and equities—saw steep losses during the initial market reaction. Allied countries and companies in defense, electric vehicles, and semiconductors will also feel pressure as supply chains and investment flows shift.
Why does this matter?
Huge tariffs would raise costs across industries and likely push up consumer prices and corporate expenses, adding inflationary pressure. Markets are already reacting with volatility and massive leveraged liquidations, and persistent trade frictions could deepen equity, commodity, and crypto sell‑offs. Overall, the uncertainty increases recession and supply‑chain disruption risks, forcing investors and companies to price in higher costs until talks between the U.S. and China bring clarity.