US market opened higher on Monday as investors turned back to risk assets, following President Donald Trump’s more softer tone that helped ease concerns over renewed US-China trade tensions.
In the early hour of trading, the Dow Jones Industrial Average (.DJI), opens new tab rose 218.9 points, or 0.48%, at the open to 45,698.46. S&P 500 (.SPX), opens new tab rose 70.0 points, or 1.07%, to 6,622.53, while the Nasdaq Composite (.IXIC), opens new tab rose 374.2 points, or 1.69%, to 2,2578.674.
Tensions between the United States and China have intensified after US President Donald Trump threatened to impose a 100% tariff on Chinese imports in response to Beijing’s new export restrictions on rare earth minerals.
The proposed tariffs is set to take effect on or before November 1, 2025, would target Chinese goods in addition to existing duties. Trump also hinted at possible US export controls on “critical software” produced by American firms, though he did not specify which products might be affected.
China issued a response through its Commerce Ministry on Sunday, stating that it preferred dialogue over confrontation. “We do not want a tariff war, but we are not afraid of one,” the ministry said, warning that Beijing would “resolutely take corresponding measures” if Washington continued on its current course.
China’s new export regulations mandate that foreign companies obtain government approval before exporting rare earth minerals, materials vital for both defense and consumer technologies. The country dominates the global market, accounting for nearly 70% of rare earth mining and 90% of processing capacity.
Addressing the escalating dispute, Trump took to Truth Social on Sunday (October 12), striking a more softer tone toward Beijing.
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” he wrote.