Americans are set to pay more than half of President Trump's tariffs as companies raise prices, according to Goldman Sachs.

Americans will likely bear the brunt of 55% of tariff costs by the end of the year, with US companies taking on 22%.

“If recently implemented and future tariffs have the same eventual impact on prices as the tariffs implemented earlier this year, then US consumers would eventually absorb 55% of tariff costs,” Elsie Peng and David Mericle wrote.

Trump posted a statement on Sunday that hinted at a possible de-escalation of trade tensions between the US and China, while at the same time issuing a veiled threat to China's President Xi Jinping.

“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 on Truth Social.

Trump's comments followed Vice President JD Vance who called on Beijing to "choose the path of reason" as trade tensions escalate.

The Trump administration now appear to be sending a message of openness to China in a bid to squash rising trade tensions between the two nations.

Trump ratcheted up tariff and trade tensions with Beijing on Friday. In a post on Truth Social, the president said the US would impose an additional 100% tariff on Chinese goods starting on Nov. 1, 2025.

The president said the move was prompted by China taking an "extraordinarily aggressive" position on trade by announcing new export controls that would take effect next month. Trump claimed the curbs affect more countries than just the US, calling them a "moral disgrace in dealing with other nations."

The president added that the timeline of the 100% tariff could be moved up based on China's response. He also said export controls targeting China's access to "critical software" would go into effect on the same day in November.

Earlier Friday, Trump had threatened a "massive increase" in duties on Chinese goods and suggesting he would scrap a planned meeting later this month with Chinese leader Xi Jinping.

Trump accused China of becoming "very hostile," pointing to curbs it took this week on exports of rare earth minerals. As part of the trade dispute, China also slapped new port fees on US ships and launched an antitrust investigation into US-based Qualcomm (QCOM). Beijing has also halted purchases of US soybeans, scrambling business plans for US farmers.

US stocks slid on Friday after Trump threatened the tariff increase.

Read more: What Trump's tariffs mean for the economy and your wallet

US tariffs on China of nearly 145% in some cases are on hold until Nov. 10 while the two countries made progress on a larger trade deal. Chinese tariffs on US goods ballooned to 125% before the pause.

Here's what else to know on Trump's tariffs:

Early next month, the US Supreme Court is set to hear a challenge to Trump's most sweeping tariffs — the "reciprocal" country-by-country duties that you can see in the graphic above. A ruling against the tariffs — which would be in line with lower-court decisions — could have significant ramifications for Trump's tariff strategy and the revenue the US has collected so far from the duties.

New duties on kitchen cabinets and vanities took effect Oct. 1.

Tariffs on timber and certain wood products (like furniture) will take effect Oct. 14.

A US pause on tariffs on goods from Mexico is also set to end early next month.

President Trump followed through on a threat to sharply increase tariffs on Chinese goods on Friday afternoon, stating that the US will impose a hefty 100% tariff on China starting Nov. 1, which will be added on top of other existing tariffs.

In a social media post, Trump cited a letter China sent to other nations regarding export controls, which he said marked \\"extraordinarily aggressive position on Trade.\\"

\\"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 posted on Truth Social. \\"Also on November 1st, we will impose Export Controls on any and all critical software.\\"

Bloomberg News reports:

Americans are set to pay more than half of President Donald Trump’s tariff costs as companies raise prices, according to economists of Goldman Sachs Group Inc. (GS).

US consumers will likely shoulder 55% of tariff costs by the end of the year, with American companies taking on 22%, the Goldman analysts wrote in an Oct. 12 research note to clients. Foreign exporters would absorb 18% of tariff costs by cutting prices for goods, while 5% would be evaded, they wrote.

For now “US businesses are likely bearing a larger share of the costs” as it takes time to raise prices, economists Elsie Peng and David Mericle wrote in the note. “If recently implemented and future tariffs have the same eventual impact on prices as the tariffs implemented earlier this year, then US consumers would eventually absorb 55% of tariff costs.”

US levies have raised core personal consumption expenditure prices by 0.44% so far this year, and will push up the closely watched inflation reading to 3% by December, they wrote.

Read more here.

China has warned the US to back off with tariff threats and said it will retaliate with higher tariffs. Beijing has already started to fight back with restrictions on the export of batteries. China has also urged for negotiations between Washington and the US to continue.

Bloomberg News reports:

President Donald Trump on Friday announced an additional 100% tariff on China as well as export controls on “any and all critical software” beginning Nov. 1, hours after threatening to cancel an upcoming meeting with Chinese leader Xi Jinping. That came after China added new port fees on US ships, started an antitrust investigation into Qualcomm Inc., and unveiled sweeping new curbs on its exports of rare earths and other critical materials.

Beijing justified its moves as defensive actions and accused the US of introducing new restrictive measures targeting China since talks between the two in Madrid in September, according to a Ministry of Commerce statement on Sunday. Last month, the US Commerce Department unveiled a dramatic expansion of its export controls, which closed loopholes in current measures to block Beijing from cutting-edge chips.

“Threatening with high tariffs at every turn is not the right way to get along with China,” the Commerce Ministry said. “If the US persists in its own course, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.”

Last week Beijing unveiled broad new curbs on its exports of rare earths and other critical materials. Overseas exporters of items that use even traces of certain rare earths sourced from China will now need an export license, it announced Thursday, citing national security grounds. Certain equipment and technology for processing rare earths and making magnets will also be subject to controls.

Read more here.

Bloomberg News reports:

China’s newly announced raft of restrictions on the export of batteries could have major impacts on US companies, analysts say.

Beijing has previously used rare earths as a tool in the trade war with Washington. But with its commanding position in the battery industry, China has identified another point of leverage in trade talks as the US increasingly needs energy storage to support data centers and stabilize the grid.

The restrictions, which take effect Nov. 8, span a wide swath of the battery supply chain. They include large-scale lithium-ion batteries used for energy storage as well as cathode and anode materials and battery manufacturing machinery, all technologies where China has a robust lead.

As with past restrictions, the new rules require battery companies to receive licenses from the Chinese Ministry of Commerce before exporting their goods. That system allows Beijing to selectively weaponize exports.

Read more here.

President Trump and Vice President JD Vance attempted to de-escalate rising trade tensions between the US and China on Sunday, following Trump's 100% tariff threat on China exports last week.

The US-China trade war has stirred up again after China placed more restrictions on its rare earth exports and said it would investigate US chipmaker Qualcomm (QCOM). Beijing has also announced a crackdown on Nvidia (NVDA) chips. This may have stirred up the Trump administration, who responded on Friday with saying it will place an additional 100% tariffs on Chinese goods from November 1st.

Bloomberg News reports:

President Trump posted a statement on Sunday that hinted at a possible de-escalation of trade tensions between the US and China, while at the same time issuing a veiled threat to China's President Xi Jinping.

“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 on Truth Social.

Trump's comments followed Vice President JD Vance who called on Beijing to \\"choose the path of reason\\" as trade tensions escalate.

The Trump administration now appear to be sending a message of openness to China in a bid to squash rising trade tensions between the two nations.

Trump ratcheted up tariff and trade tensions with Beijing on Friday. In a post on Truth Social, the president said the US would impose an additional 100% tariff on Chinese goods starting on Nov. 1, 2025.

The president said the move was prompted by China taking an \\"extraordinarily aggressive\\" position on trade by announcing new export controls that would take effect next month. Trump claimed the curbs affect more countries than just the US, calling them a \\"moral disgrace in dealing with other nations.\\"

Read more here.

China stocks felt the full force of President Trump's tariff threats with equities falling and bond futures climbing, as investors remained concerned over rising trade tensions between Washington and Beijing, despite Trump's Truth Social post signaling a de-escalation of the trade war.

Bloomberg News reports:

The Hang Seng China Enterprises Index hsce (^HSCE) fell as much as 3.6% before paring its drop to around 2%. Tech heavyweights Xiaomi Corp. (XIACF) and Alibaba Group Holding Ltd. (BABA, 9988.HK) were among the biggest drags. The CSI 300 (930748.SS) Index, a benchmark for mainland shares, closed down 0.5%. The People’s Bank of China boosted its daily reference rate to the strongest since November in a bid to keep the yuan steady.

The setback follows a sharp rally in Chinese equities this year, as investors shrugged off trade frictions and bought into the country’s tech prowess and Beijing’s ability to support the economy. Trump’s threat late last week to slap an additional 100% tariffs on Chinese goods, in response to Beijing’s export controls on critical minerals, served as a stark reminder of the fragility of any trade truce.

The decline was milder than the 6.1% slump in the Nasdaq Golden Dragon China Index on Friday. Some investors appear to be using the selloff to buy the dip, expecting the worst to be avoided following signals from the White House that it’s open to a deal.

“Markets should brace for near-term volatility from the tariff headlines, but China’s diversified export base and swift policy response mean the broader impact on the economy and markets is contained,” said Dilin Wu, a strategist at Pepperstone Group. “Traders may see this as a short-term shock rather than a structural threat.”

Read more here.

Bloomberg reports:

Chinese President Xi Jinping has drawn a clear red line in a bid to stem new US exports controls, threatening to reignite a tit-for-tat trade spiral with Donald Trump just weeks before a planned meeting between the leaders of the world’s biggest economies.

After China unveiled wide-ranging global export controls on products containing even traces of certain rare earths this past week, Trump fired back by threatening to cancel a planned in-person meeting with Xi — their first in six years. The US leader also announced plans to double tariffs on Chinese goods to 100%, along with sweeping curbs on “any and all critical software.”

On Sunday, Beijing justified its moves as defensive actions and accused the US of introducing new restrictive measures targeting China since talks between the two in Madrid in September. Last month, the US Commerce Department unveiled a dramatic expansion of its export controls, which closed loopholes in current measures to block Beijing from cutting-edge chips.

“Willful threats of high tariffs are not the right way to get along with China,” the Commerce Ministry said. “China’s position on the trade war is consistent: we do not want it, but we are not afraid of it.”

Read more here.

The impact of President Trump's latest tariff threat was felt across economic sectors Friday, including recently soaring crypto markets, Bloomberg reports:

Crypto market traders were hit by record liquidations just days after Bitcoin touched an all-time high, volatility triggered in large part by the latest round of tariffs from US President Donald Trump.

Cryptocurrency prices tumbled on Friday after Trump said he would impose an additional 100% tariff on China and export controls on software. The declines precipitated, and then were made worse by what data tracker Coinglass described as “the largest liquidation event in crypto history.”

While market weakness had already been present coming into Friday, Trump’s post sparked a decline of more than 12% in Bitcoin. The largest token, which had earlier this week reached a record of more than $125,000, was hovering below $113,000 as of Saturday morning in London.

Read more here

Tariff jitters returned to Wall Street in a big way on Friday.

The Dow (^DJI) fell almost 900 points. The S&P 500 (^GSPC) lost 2.7%, and the Nasdaq Composite (^IXIC) sank over 3.5% in their worst days since April. The moves came after President Trump renewed his tariff threats against China, specifically warning of a \\"massive increase\\" in duties.

The moves downward Friday cemented significant weekly losses, and it wiped out stock gains in October so far. The major indexes haven't had a down month since May.

You can catch up on the day's action in our markets live blog.

China’s State Administration for Market Regulation (SAMR) announced on Friday that it is launching an investigation into Qualcomm’s (QCOM) June acquisition of Autotalks, pulling the chip company into a growing number of firms ensnared in the ongoing economic tit-for-tat between the US and China.

In a statement, SAMR said Qualcomm’s acquisition is suspected of violating the country’s anti-monopoly laws, though it didn’t provide any further details on what element of the deal broke monopoly laws or how.

In a statement, a Qualcomm spokesperson said, “We are fully cooperating with SAMR in this matter. Qualcomm is committed to supporting the development and growth of our customers and partners.”

The announcement comes the same day President Trump wrote in a Truth Social post that the Chinese government is seeking to tighten its control over rare earth minerals. Trump went on to threaten a “massive increase” in tariffs on Chinese goods.

Read more here.

Stocks fell on Friday after President Trump posted on Truth Social that he is considering imposing a \\"massive increase\\" in tariffs on Chinese goods and announced that he would not meet with Chinese leader Xi Jinping at the APEC summit in South Korea in two weeks.

\\"I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,\\" Trump said after rebuking China for threatening rare earth export controls. \\"One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America.\\"

Some very strange things are happening in China! They are becoming very hostile, and sending letters to Countries throughout the World, that they want to impose Export Controls on each and every element of production having to do with Rare Earths, and virtually anything else they…

— Unofficial Trump on X (@trump_repost) October 10, 2025

Trump's post sent Chinese tech stocks Alibaba (BABA), Tencent (TCHEY), and Baidu (BIDU) tumbling, while shares of rare earths companies MP Materials (MP) and USA Rare Earth (USAR) soared.

Meanwhile, Treasurys turned lower, with the 10-year yield (^TNX) dropping 8 basis points to 4.06%.

Read more about the market's reaction here.

Chinese authorities began an antitrust probe into US chipmaker Qualcomm (QCOM) and hit US shippers with new port fees.

They're the latest in a tit-for-tat jostling for leverage by the US and China ahead of this month's key meeting between Presidents Xi and Trump. A fragile trade truce between the two countries will expire in November too.

Bloomberg reports:

Beijing’s Transport Ministry announced Friday that it will begin collecting fees on vessels owned by US companies and individuals, as well as those built in America, starting Oct. 14. The move coincides with the date Washington plans to impose new charges on large Chinese ships calling at US ports.

Separately, China’s market regulator opened an anti-monopoly investigation into Qualcomm over its acquisition of Israel’s Autotalks Ltd. ...

The measures add to Beijing’s move this week to tighten export controls on rare earths and other critical materials, as well as its ongoing halt on US soybean purchases, escalating pressure on American farming communities that largely voted for Trump in 2024.

Beijing’s unexpected volley followed a flurry of steps by the Trump administration targeting the world’s No. 2 economy. Besides the planned ship levies, officials in Washington have reportedly in recent days proposed barring Chinese airlines from flying over Russia on flights to and from the US, and expanded sanctions to further prevent the likes of Huawei Technologies Co. accessing restricted US goods.

Read more here.

Nvidia is in China's crosshairs again, as Beijing tightens border checks on the US company's products at key ports.

Previously, customs authorities had done little to hinder US chip imports as long as duties were paid as required. The stepped-up measures come amid a Chinese push to get its tech companies to order chips locally instead.

The Financial Times reports:

Teams of customs officers have been mobilised at major ports across the country in the past few weeks to carry out stringent checks on semiconductor shipments, according to three people with knowledge of the matter. ...

The targeted processors — Nvidia’s H20 and RTX Pro 6000D — are designed to adhere to US export controls and maintain the Silicon Valley chipmaker’s market share in China.

But one person said the checks had been extended more recently to all advanced semiconductor products, to also better target the smuggling of high-end chips that breach US export curbs. ...

The latest moves have occurred as senior officials in Beijing have determined that domestic chips have reached performance standards that compare with Nvidia’s China-specific chips.

Read more here.