Trump threatens an additional 100% tariff on China, Europe wants more trade, gold price pointing to dollar decline

(Pexels photo)

COGwriter

After China placed certain export restrictions, Donald Trump is again looking for an escalation of tariffs:

Trump threatens tech export limits, new 100% tariff on Chinese imports

October 11, 2025

President Donald Trump on Friday threatened to place an additional 100% tax on Chinese imports starting on Nov. 1 or sooner, potentially escalating tariff rates close to levels that in April fanned fears of a global recession.

The president expressed frustration with new export controls placed on rare earth elements by China — and said on social media that “there seems to be no reason” to meet with Chinese leader Xi Jinping as part of an upcoming trip to South Korea. …

On Thursday, the Chinese government restricted access to rare earth minerals, requiring foreign companies to get special approval for shipping the metallic elements abroad. It also announced permitting requirements on exports of technologies used in the mining, smelting and recycling of rare earths, adding that any export requests for products used in military goods would be rejected. https://www.npr.org/2025/10/11/g-s1-93113/trump-threatens-100-tariff-chinese-imports

Before going further, let me add that these increases in tariffs for goods imported from China into the USA will be inflationary if fully implemented–prices will go up.

Europeans are looking to increase trade with China:

Are You Ready To Pay A 104% Tariff On All Products From China?

Switzerland hopes to seal an updated free trade agreement with China in early 2026, Foreign Minister Ignazio Cassis said on Friday, following a meeting with his Chinese counterpart Wang Yi. China is Switzerland’s third-biggest trading partner after the United States and the European Union, and the need to update their existing deal – which entered into force in 2014 – has become more important after the U.S. imposed tariffs of 39% on Swiss imports in August. https://www.reuters.com/world/china/switzerland-hopes-seal-updated-trade-deal-with-china-early-next-year-2025-10-10/

With both the U.S. and China leveraging Europe’s dependences against them, European Union leadership is beginning to adapt to a “new reality” of realpolitik characterized by transactional relationships among major powers. The summit cemented in words a gradual hawkish policy shift where Europe appears to be approaching China, and the world at large, more pragmatically—recognizing that in a reshuffling economic world order, the only actor that can be relied upon to consistently look out for Europe is Europe itself.

In this way, the European Union has wisely settled on following a “yellow light” in its long-term strategic approach to Beijing—proceed with caution. 10/07/25 https://www.csis.org/blogs/europe-corner/red-light-green-light-assessing-european-unions-tripartite-china-strategy-2025

China’s Premier Li Qiang and European Union chief Ursula von der Leyen stressed cooperation during their meeting in New York, as the world’s No.2 and No.3 economies looked to defuse trade tensions while squeezed by US President Donald Trump’s tariffs, reported Reuters.

Von der Leyen, in a statement on her X account after the meeting on Wednesday, said she had discussed trade matters with China’s No.2 leader on the sidelines of the United Nations General Assembly, and that she appreciated “China’s willingness to engage with us in a spirit of mutual understanding.”

“Europe’s concerns regarding export controls, market access, and overcapacity are well-known,” she said.

China and the EU have spent the past two years on the brink of a trade war, which most analysts trace back to the European Commission’s 2023 decision to open an anti-subsidy investigation into Chinese-made electric vehicles, setting off probes into EU brandy, dairy, pork and other goods.

But with Trump’s trade policy squeezing both Chinese and European exports, Beijing and Brussels have had reason to seek a rapprochement. 09/25/25 https://www.thepigsite.com/news/2025/09/china-eu-ease-trade-tensions-amid-us-tariff-squeeze

There will be many unintended consequences of Donald Trump’s statements and policies, including relating to trade and tariffs.

A reader from Italy sent a link in Italian (https://www.maurizioblondet.it/il-rincaro-delloro-segnala-limminente-crollo-del-dollaro-e-per-la-russia-e-una-manna/) that I machine-translated into English. Here are excerpts:

The rising price of gold signals the dollar’s impending collapse. And for Russia, it’s a godsend

The huge surge in gold prices is a boon for Russia and a sign of the dollar’s impending collapse.

850% – the increase in gold prices since 2006, when Russia began implementing a strategy to increase its gold reserves. This strategy has not only borne fruit, but has also been a resounding success, experts note ( https://vz.ru/economy/2025/10/10/1365398.html).

This strategy was further validated in 2014, when the first sanctions were imposed against Russia. Subsequently, the Russian Central Bank sold off US Treasuries and increased its gold reserve accumulation.

Today, Russia holds 2,326.5 tons of gold, stored domestically and protected from Western sanctions. This is Russia’s “golden anchor” in the turbulent sea of ​​the global economy.

China has since followed Russia’s strategy, having already sold off nearly a third of its US bond reserves and is actively increasing its gold reserves.

The current sharp increase in gold demand is a consequence of Trump’s policies: US tariffs are destabilizing global trade, US government debt is growing at an accelerating pace, and the Federal Reserve may lose its independence.

Investors lost confidence in the dollar and turned to a safe haven: gold. China’s holding of US treasuries. He saw this as a point of leverage that China has.

Russia and China have been increasing their holdings in gold, partially because of USA debt, sanctions, tariffs, and threats.

The world order is not going to remain as it has.

Despite having many problems, Europe will emerge as a leader in trade and the USA will stop being the leader of its world order.

To reduce risks to itself, the Chinese have reduced its government’s holdings of US treasuries over the years–but it still has a lot.

One day, if it does not slowly reduce its holdings to a negligible amount, I expect China to utilize its nuclear option–dumping its US assets, which will help eliminate the US dollar as the primary reserve currency for the world.

That will NOT end well for the USA.

There will be many unintended consequences of Donald Trump’s actions, statements, and threats.