UPDATE 5-Trump hits China with retaliatory tariffs in trade war escalation

* US to impose 100% tariffs on November 1 * Software export controls also to take effect * Trump: 'No reason' to meet Xi in three weeks * Rift between two largest economies leaves markets reeling * Stocks drop by most since April in response to Trump's threat (Updates with new tariff and export control levies in paragraphs 1-3) By Trevor Hunnicutt WASHINGTON, Oct 10 (Reuters) – U.S. President Donald Trump on Friday said he was lifting tariffs on Chinese exports to the U.S. to 100% and imposing export controls on "any and all critical software" in a reprisal to recently announced export limits by China on rare earth minerals critical to tech and other manufacturing. "Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying," Trump said on his Truth Social platform. "Also on November 1st, we will impose Export Controls on any and all critical software." The announcement followed an earlier post issued on Friday that signaled new levies against Chinese goods were in the offing while also threatening to cancel a meeting with President Xi Jinping, a broadside against Beijing on Friday that sent markets and relations between the world's largest economies into a spiral. Trump, due to meet Xi in about three weeks in South Korea, complained on social media about what he characterized as China's plans to hold the global economy hostage after China dramatically expanded its rare earth element export controls on Thursday. China dominates the market for such elements, which are essential to tech manufacturing. Trump said there was no reason to hold the meeting with Xi that he had previously announced. Beijing had never confirmed the meeting between the leaders. The remarks signaled the biggest rupture in relations in four months and immediately raised questions about whether an economic detente between Beijing and Washington – the world's biggest factory and its biggest consumer – can survive. (Reporting by Trevor Hunnicutt; additional reporting by David Brunnstrom, David Lawder and Maiya Keidan; Editing by Caitlin Webber and Deepa Babington)

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