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Mayhem in the market: A full-blown trade war looms as China warns of retaliation against Trump's 100% tariff threat

BEIJING/WASHINGTON, Oct 13: China has warned US of severe retaliation if President Donald Trump doesn’t walk back the latest 100% tariff threat that takes effect on November 1. The total tariff will go up to 130 with the new 100% dose.

Trump's threat followed China on Thursday ramping up export restrictions on rare earth minerals, critical components in the manufacture of semiconductors, electric vehicles and other high-tech goods. The curb requires foreign companies to obtain special approvals for shipments, effectively tightening the noose on US tech supply chains.

The immediate impact of the new tariff was on US markets. The mere threat has already sent shockwaves through Wall Street, wiping out an estimated $770 billion in market capitalization from major tech companies, including Amazon and Tesla.

Trump also floated the possibility of export controls on critical US software, further rattling investor confidence.

The fallout was immediate. On October 10, the Nasdaq plunged 3.6%, its worst single-day performance since April. Amazon’s market value dropped by $121 billion, while Tesla lost $71 billion. Nvidia, another tech giant heavily reliant on Chinese manufacturing and markets, saw a staggering $229 billion wiped off its valuation.

For Amazon, the threat of tariffs raises concerns about rising costs across its vast e-commerce ecosystem, which relies heavily on Chinese-made electronics, apparel and consumer goods. Analysts warn that the company may be forced to pass on higher prices to consumers (of its own products) or absorb the costs, squeezing margins during the crucial holiday season.

Tesla, meanwhile, faces a dual threat. Not only does it source key components from China, but it also operates a major Gigafactory in Shanghai. The tariffs could complicate supply chains and dampen demand in China, one of Tesla’s largest markets.

As the market is in turmoil, Trump appeared to soften his stance days later, on Sunday, stating that the US “wants to help” China and calling President Xi Jinping “highly respected.” However, he did not walk back the tariff threat, leaving markets on edge.

As the November 1 deadline looms, investors and global leaders alike are bracing for potential fallout from what could become a full-blown trade war.

How does it go with Amazon, Tesla

How Amazon and Tesla are being affected by Trump’s proposed 100% tariff on Chinese import? Anything made in China and sold in the US could become twice as expensive.

Amazon sells tons of products made in China—electronics, clothes, toys, home goods. If tariffs go up, those products will cost more to bring into the US. Amazon has two options: - Raise prices for customers (which could hurt sales), or absorb the extra cost (which could hurt profits). Either way, it’s a squeeze—especially with the holiday shopping season coming up.

Tesla builds cars in the US and China, and buys parts from Chinese suppliers. A 100% tariff could make Chinese-made parts much more expensive. Tesla might have to: Find new suppliers outside China (which takes time and money); Pay more for parts, which could raise car prices or reduce profits; Plus, China is a huge market for Tesla. If tensions rise, China might retaliate, making it harder for Tesla to sell cars there

Trump says the new regime will begin November 1, but markets are already reacting. Tech stocks, including Amazon and Tesla, have lost billions in value just from the announcement

Amazon isn’t a traditional seller in most cases. What Amazon actually does? It operates primarily as a marketplace platform, not a direct seller for most products. That means third-party sellers list their products on Amazon; Amazon provides the infrastructure—website, logistics, payments, customer service. Amazon earns fees and commissions from these sellers, plus revenue from ads and services.

How does tariffs affect Amazon as a marketplace? Even though Amazon doesn’t manufacture most of the goods it sells, tariffs still hit its ecosystem: Sellers face higher import costs for Chinese-made goods; They may raise prices, which could reduce demand; If prices go up and customers buy less, Amazon earns less in fees.

Amazon might also face higher costs for its own private-label products (like AmazonBasics), which are mostly made in China. For other products Amazon’s profits are tied to sales volume, seller success and customer satisfaction. Tariffs disrupt all the three. Even if Amazon isn’t the seller here, it is deeply affected by the ripple effects.—Agencies

The prospects for a peaceful handover remain slim. Both the Danish Government and Greenland’s self-governing administration maintain that "Greenland is not for sale." European leaders from the UK, France, and Germany have unified behind Denmark, warning that a forced seizure would trigger a total rupture in transatlantic relations. Next week’s talks with Marco Rubio are viewed as a "last-chance" window for dialogue before the administration considers more coercive measures.


"Out of an abundance of caution, the Department of Justice temporarily removed the image for further review. After the review, it was determined there is no evidence that any Epstein victims are depicted in the photograph, and it has been reposted without any alteration or redaction," the DoJ said.


The claim that all Americans will receive a $1,000 additional tax refund is a political projection and an average estimate, not a guaranteed, universal cheque. It is one of the most prominent talking points surrounding the One Big Beautiful Bill Act (OBBBA), which became law in July 2025.


Even as the shutdown’s economic damage is still being assessed, the Bill’s passage does not resolve deeper disputes over health care subsidies and immigration policy, which remain flashpoints in upcoming negotiations. With the next funding deadline looming in just two months. Democrats said the Republicans played chicken with the economy.


A day before the Sunday bonanza, dictated more by commonsense, Trump had turned the tables on his rivals— although not in tune with the Republican policy—writing on his Truth Social on Saturday, “I am recommending to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to money sucking Insurance Companies in order to save the bad Healthcare provided by ObamaCare, BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE.” This takes the current polarising American politics to a new decisive level where the Conservatives—or at least Trump—will put the Dems to the blush. That will also spell the penultimate step to the end of (prevailing) 'elite' economics itself! But long way off!!


ANALYSIS: While Trump’s high-stakes diplomatic tour across Southeast Asia sought to reinforce US alliances in the region to counterbalance Chinese expansionism—but leaving Taiwan in the lurch—the Busan summit may mark a turning point in reshaping US-China relations too at the same time. But Dems say it was all dud. Advantage China: China successfully used the rare earths export controls and a soybean embargo to force the US to lower tariffs—Observers.


Trump's mere threat of 100% tariff has already sent shockwaves through Wall Street, wiping out an estimated $770 billion in market capitalization from major tech companies, including Amazon and Tesla. Investors and traders alike are bracing for potential fallout even as the holiday season is drawing close.


Erika Kirk, Charlie’s widow, delivered a stirring eulogy in which she declared "I forgive him", Tyler Robinson, the man who killed her husband. “I choose forgiveness,” she said through tears, “not because it’s easy, but because Charlie believed in grace over vengeance.” Her words drew a standing ovation and left many in the crowd visibly moved.


The shooting has also sparked a wave of false alarms. On Thursday, the US Naval Academy and the University of Massachu-setts Boston were both locked down temporarily due to unfounded reports of active shooters, underscoring the climate of fear gripping the country.


The timing of the revocation has drawn public scrutiny. Harris is set to embark on a 15-city promotional tour for her forthcoming memoir, '107 Days', which chronicles her brief presidential campaign after Joe Biden's withdrawal and reflections on public service. The tour, beginning in mid-September, will bring Harris back in the national spotlight after months of relative quiet following her electoral defeat to Trump in 2024.


Trump invoked a clause in the Fed’s founding statute that allows him to remove members of the board with "cause" although the Fed is independent. But a "cause" can be arbitrary and challegeable in the court. Cook said Trump has no authority to sack her and she will not go. "I will continue to carry out my duties."


He was fired in 2019. The inquiry began in 2020 with the disclosure of national secrets in his scathing book, “The Room Where It Happened.” Trump had tried to stop its publication. After leaving office thereafter, he has been critical of Trump's policies. Even as the raid was on, on Friday, Bolton wrote: The "meetings (Ukraine) will continue because Trump wants a Nobel Peace Prize."


Shouting profanities at the police officers deployed by Trump's executive order taking over the city police department, calling them “fascists” and yelling, “Why are you here? I don’t want you in my city!,” Sean Dunn hurled the wrapped footlong Subway sandwich he was holding at one officer, hitting him square in the chest, all the ingredients squirting out, before attempting to flee on foot.


Trump was accompanied by his architect who will add a ballroom to the White House. He was also inspecting the largescale decorations he has already done to the complex, including flagpoles in the north and the south lawns, which are in fact a security risk, being identifiables for the White House from afar aerially.(See footnote)


India is not currently listed, but the list may evolve. India’s B1/B2 overstay rate in 2023 was 1.29%, well below the threshold that triggered the bond for other countries. The initiative is part of President Trump’s renewed immigration enforcement strategy.


Under the Deferred Resignation Program (DRP), in the first round 870 employees (4.8% of workforce) and in the second round 3,000 employees (16.4%), a total of 3,870 staff, will leave, reducing NASA’s civil servant headcount from 18,000 to 14,000, NASA spokesperson Cheryl Warner said in a statement.


"... it was getting bigger and bigger, and we got it solved through trade. We said, you guys want to make a trade deal. We're not making a trade deal if you're going to be throwing around weapons..."


“These (NASA) employee terminations, like the layoffs of nuclear workers at the National Nuclear Security Administration, bird flu workers at USDA, wildfire GIS workers at the Forest Service, and weather forecasters at NOAA, will only make America weaker,” George Whitesides, NASA’s former Chief of Staff, said in a post on X.


Like he threatened Elon Musk that he will be deported, Trump now threatens Mamdani, only to turn him into a national hero. In fact, Trump was incensed by Mamdani's pledge to stop ICE raids in the city if elected. Mamdani's childish, stupid, populist ideas of fare-free buses, rent freezes and city-owned grocery, in a city like New York, had already inflamed Trump.


The first shooting took place at Senator Hoffman's home in Champlin, where he and his wife suffered multiple gunshot wounds. Shortly after, the other shooting occurred at Representative Hortman’s residence in Brooklyn Park. Both Hortman and husband were killed. Political motive is suspected.


Higher tariffs will have a cascading effect, raising the costs of everything like housing, cars and household items in the US market. However, local steel makers are cheerful as they made huge gains in share prices following the announcement on May 30. Trump says it is intended to protect America’s national security and industries.


The Bill would extend corporate and individual tax cuts passed in 2017 during Trump's first term and reduce eligibility for health and food programs for the poor in order to reduce spending, but boosts spending on military and border security. It heads to the US Senate for a debate and vote.


Moody's has forecast that restoring the AAA rating would be possible if only Government revenues grow and spending cuts are effected. But, even as the downgrade has triggered a fiscal responsibility debate, the Republicans are negotiating a diametrically opposite package of tax cuts and higher spending which would further worsen the situation.


The drug manufacturers will be given a timeframe of 30 days to voluntarily implement the programme, failing which the administration will take unilateral actions to cut the prices.


Secretary of State Marco Rubio will hold additional charge of National Security Adviser as an interim arrangement, Donald Trump said. Mike Waltz had come under scrutiny after mistakenly adding The Atlantic magazine’s editor-in-chief to a Signal chat discussing military plans of attack on Houthis. He resigned.


As Trump stopped Federal funding and the returns from its private equity funds stakes is falling, Harvard, faced with a liquidity crunch, has stopped hiring, sold $750 million bonds and is selling $ 1 billion of its endowment stakes.


Trump posted on his Truth Social platform: “Harvard can no longer be considered even a decent place of learning, and should not be considered on any list of the World's Great Universities or Colleges..." Harvard president Alan Garber reacted, refusing to “negotiate over its independence or its constitutional rights.”


Earlier, an orthodox Kennedy used to advocate Vitamin A treatment for measles and there were occasions when cases of measles admitted to hospitals had to be treated first for Vitamin A toxicity, according to BBC. Following the deaths of unvaccinated kids he has almost taken an about-turn because of public outcry.


During the Republican presidential campaign Kennedy had vowed to hollow out the CDC and the NIH, the top beacon for biomedical research around the world. To make the US healthcare more efficient! We don't know what prompted this idea. Now that he is the Health Secretary, although not the President, he is in charge to deliver what he pledged and the birth of DOGE has made matters easy for the anti-science conservative. Meanwhile, the threat from measles and bird flu is looming large and Kennedy has famously declared that vaccine is only a personal preference.

Footnote: Blindly chopping the staff is not the prescription to raise the efficiency bar! Scrapping a department that is not in one's domain is a different issue. Kennedy and his ilk can't be expected to see the real problems, let alone finding their solutions.


President Trump has accused the South African Government of racial discrimination and violence against the Whites. He had also accused South Africa of supporting the Palestinian militant group Hamas. Recently, the State Department had denied visa to its envoy and expelled him from the US.


Trump had been reckless making abnormal pronouncements bordering delusions of a megalomaniacal tyrant. Examples are he just out of the blue, without any occasion, and in quick succession, declares soon after he took office that America is going to annexe Canada, buy Greenland, take back Panama canal, deport all illegal immigrants (they may number millions), he will slash all Fed funds, ask millions of workers to resign, sell citizenship as gold cards, one bluff on Ukraine, another on Gaza and so on and so forth. Now he says he was joking!


The incident took place shortly after midnight at 17th and G Street NW, a block west of the White House near the Eisenhower Executive Office Building.


Trump has suspended imposition of the 25% tariff on Mexican and Canadian goods till April 2 when another set of a global regime of reciprocal tariffs will come into being.


French Defence Minister Sebastien Lecornu said on Thursday Paris will continue intelligence sharing with Ukraine although CIA Director John Ratcliffe had said on Wednesday the US was pausing suppoprt to Kyiv.


Reacting to Trump's move, Ukrainians said, Trump is "pushing us towards capitulation," accepting Russia's demands. "To stop aid now means to help Putin." The vengeance also dates back to his first term when Zelensky did not agree on a probe against Joe Biden.


REMARK: 'The New' Trump's America First policy and his determination to reduce wasteful expenditure with a view to turning the US administration more relevant and effective for the good of the people offers a study in contrast with India's destructive behemoth the crooked vote bank politicans nurture at the expense of 80 crores of the country's poor.


Trump sanctions impose visa restrictions on the ICC officials. But the US and Israel are not members of the court. The President issued the executive order on Thursday following Netanyahu's visit to Washington. The ICC said it "stands firmly" by its personnel.


Donald Trump downplayed China’s retaliatory tariffs and also said, "in no rush" to talk to Xi Jinping. He had started the trade war with China in 2018 during his first term when the deficit hit a record US$418 billion.


About Greenland he said its acquisition is an absolute necessity for purposes of security. Trump is also proposing merger of Canada in the USA as its 51st State.


There are growing rumblings of resentment inside the defence establishment over the nomination as large-scale changes are underway. Pete has stated the top brass at Pentagon will go.


"I mean honestly, we did so well, we had such a great...” And the former President cast doubt on the integrity of the coming election too.


Trump wants to be back in the White House “not to focus on your problems, but to focus on his,” Harris cautioned her countrymen in her 'Closing Argument' at the Ellipse.


A Saturday Night show had striking references to Harris' fall from a coconut tree and Trump's dance at an Oaks, Pennsylvania, town hall...


When Trump vowed a cruel, massive deportation of illegal migrants on his Day 1, Harris could instead propose a more positive plan of action to prevent illegal immigration once and for all with ...
President Joe Biden on Wednesday signed a Bill to ban Tik Tok. The Senate had passed it late Tuesday.


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