By William Collins, consultant in stock markets – Eurasia Business News, October 10, 2025. Article no 1823

The U.S. President Donald Trump threatened a “massive increase” in tariffs on Chinese imports, citing China’s trade hostility and new export restrictions on rare earth minerals. This threat came after China imposed tighter controls on rare earth elements vital for manufacturing semiconductors and various advanced technologies. Trump’s announcement, including the possible cancellation of a planned meeting with Chinese President Xi Jinping, triggered a sharp selloff in the U.S. stock markets.

Specifically, the Nasdaq fell by more than 2.4 %, the Dow Jones Industrial Average dropped around 500 points (about 1.1%), and the S&P 500 declined over 1%.

Technology stocks heavily dependent on China were hit hardest, while U.S. rare earth mineral companies’ shares surged in anticipation of increased domestic demand. The market turmoil reflected investor concerns about escalating trade tensions between the world’s two largest economies and the potential economic impact of renewed tariff hikes.​

The increase in tariffs follows a reduction earlier this year from a peak of 145% to about 30%, and Trump’s tariff hike threat signals a resurgence in aggressive trade policies. The rare earth minerals issue is central to this conflict, given their crucial role in modern technology and defense.

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Gold prices surged and hovered just above the $4,000 per ounce mark, reflecting a safe-haven demand amid market tensions. At one point, gold futures traded around $4,012 per ounce, up by about 1% for the day, with the price range reaching a high of $4,038.6 and a low near $3,961.2. Gold saw an eighth straight weekly gain driven by geopolitical concerns and tariff threats by President Trump against China.

​Read also : Gold : Build Your Wealth and Freedom

Silver also performed strongly, reaching near record highs. They traded around $47.53 per ounce on commodity exchanges, with spot silver prices reported as high as $50.21 per ounce, just below its recent all-time high above $51 achieved earlier in the week. Silver’s price surged over 70% for the year, strongly outpacing gold due to tight supply, industrial demand, and concerns over fiscal instability.

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© Copyright 2025 – Eurasia Business News. Article no. 1823