On October 10, 2025, Donald Trump announced new 130% tariffs on all Chinese-imported goods to the US and additional restrictions on exporting critical software to China. Existing tariffs stood at 30% before this declaration.
Markets responded immediately: the S&P 500 dropped 2.7% (183 points), the Dow Jones lost 879 points (1.9%), and Nasdaq fell 3.6%. Major tech giants—Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla—lost nearly $1 trillion in market capitalization in a day.
The impact was magnified by companies' dependence on China: Apple assembles most iPhones there, Amazon faces unmanageable margin losses, and clothing producers like Gap and Timberland lack large-scale alternatives to Chinese manufacturing.
The situation escalated after China’s response on October 9 with new export curbs on rare earth elements, vital for the tech industry. China now controls 12 critical minerals, accounting for up to 90% of global production, solidifying market dominance.
Tariffs and the trade war have already disrupted global supply chains, capital markets, and manufacturers. Ukraine’s economy may also feel the effects: falling raw material prices and reduced demand for exports are likely, though shifts away from China may create postwar opportunities for Ukrainian industry.
The US-China trade war is both economic and geopolitical—affecting Taiwan, the South China Sea, human rights, and technological rivalry. The world is entering an era of managed trade and strategic autonomy. How long the confrontation lasts and the ultimate consequences for the global economy remain uncertain.
