Measure could restrict shipments to China of products that contain or are manufactured with US software. The plan would retaliate against China’s rare earth export restrictions if adopted.
The Trump administration is considering a plan to restrict a wide range of software exports to China, from laptops to jet engines, to retaliate against Beijing’s possible export restrictions on rare earths, according to a Reuters report. Although the plan is not the only option available, it would fulfill President Donald Trump’s threat, made earlier this month, to ban exports of “critical software” to China, restricting shipments of products that contain software manufactured in the United States or that were produced with software from that source.
On October 10, Trump posted on social media that he would impose additional 100% tariffs on US-bound shipments from China, along with new export controls on “any and all critical software” by November 1, without further details. According to the agency, the measure may not move forward, but the fact that it is being considered shows that the Trump administration is evaluating a drastic escalation in the confrontation with China. There are, however, those within the administration who are in favor of a softer approach. The White House declined to comment.
A spokesperson for the Chinese embassy also did not comment specifically on this possible measure, but said the country opposes the “imposition of unilateral far-reaching jurisdictional measures” by the US and promised to “take resolute measures to protect its legitimate rights and interests.”
The measure could harm global trade with China, especially in technology products, and could have a huge cost to the United States economy if it is fully implemented, Reuters reports.
While Trump has imposed a series of tariffs on China since taking office in January, he has been hesitant to use restrictions on exports to Beijing: He imposed restrictions on shipments of Nvidia’s AI chips and chip design software, but then removed them.
Chinese imports currently face US tariffs of 55%, which could rise to 155% if Trump follows through on his threat. Treasury Secretary Scott Bessent said last Friday that he hopes to meet Chinese Vice Premier He Lifeng in Malaysia this week, ahead of a meeting between Trump and Xi Jinping in South Korea at the end of the month.
