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Los Angeles, Calif. (October 23, 2025)- Earlier in October 2025, China announced additional export controls on rare earth minerals that are critical to U.S. defense and technology industries. In response, President Donald Trump announced on Truth Social that the U.S. would impose an additional 100 percent tariff on all imported Chinese goods, as well as new export controls on critical software on November 1, 2025.
As of this writing, President Trump has not yet implemented any new tariffs or export control restrictions on China, whether by Executive Order or other action. Indeed, two days after his initial post, President Trump published another Truth Social post suggesting that tariffs and controls may not be imposed and that a diplomatic solution could be reached.
To the extent a deal is not reached, then the exact legal basis for these potential tariffs remains unclear. These tariffs would probably be issued pursuant to the International Emergency Economic Powers Act (IEEPA), which allows the President to take certain actions in response to specific emergencies without consultation with Congress or other governmental authorities. That said, the precise scope of President Trump's IEEPA tariff authority is the subject of a case now pending before the United States Supreme Court, V.O.S. Selections v. United States. The case has been consolidated with Learning Resources, Inc. v. Trump and will be argued in front of the Supreme Court on November 5, 2025. To read more about these legal challenges, please see the recent Lewis Brisbois Client Alert entitled "Recent Updates to Trump Tariff Appeal."
While relatively little is known about the potential new tariffs, even less is known about planned export control restrictions, other than that they would relate to critical software.
If a 100 percent tariff is imposed, it also bears noting that it will be in addition to other tariffs presently on Chinese goods, including opioid tariffs, reciprocal tariffs, and certain product-specific tariffs. In other words, if these new tariffs take effect, certain importers will face tariff rates of well over 100 percent.
The U.S. and China are reportedly in talks for a trade deal that may preclude new restrictions from taking effect. However, if a deal cannot be reached, it is certainly likely that an Executive Order will be forthcoming before the month's end.
Key Takeaways
While the November 1, 2025 deadline is just around the corner, the U.S. and China may be able to avert imminent tariff and export control restrictions. Absent a trade deal, U.S. importers are likely to see another massive increase in tariffs, disruptions in supply chains, and other commercial and legal issues.
Lewis Brisbois's attorneys are actively engaged in the wide range of legal issues in this area and are advising clients on managing legal and business risk as events continue to develop at an accelerated pace. For more information, contact the author or editor of this alert.Visit our Ukraine Conflict, International Trade, Export, Import and Investment Controls & National Security Practice page for additional alerts in this area.
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