Trump's desperate attack on China backfires within hours, $1.5 trillion lost in US market crash

U.S. stock markets plunged on October 10, 2025, after President Trump announced a sweeping new round of tariffs—an additional 100% duty on all Chinese goods—along with export controls on critical software, starting November 1. The Dow Jones dropped 878 points, the Nasdaq fell 3.56%, and the S&P 500 slid 2.71%, wiping out more than $1.5 trillion in market value. Trump said the move was a direct response to China’s “extraordinarily aggressive” new export controls on rare earth minerals and critical manufacturing components, which threaten global supply chains. The President accused Beijing of trying to “hold the world captive,” cited the need to defend U.S. national interests, and warned the unprecedented trade escalation could deepen if China doesn't reverse course. Trump also left open the possibility of canceling a meeting with President Xi Jinping, saying the situation was “shocking” and not of his choosing.