- US President Trump announced a 100% tariff on China over rare earth export restrictions
- Market veteran Samir Arora said the steep tariffs are unsustainable and will be withdrawn
- US markets lost $2 trillion after Trump's rare earth export warning to China
The trade war between the United States and China reignited last week on President Donald Trump flagged China's further crackdown on export of rare earth elements, prompting the US President to announce a 100% tariff on the Asian powerhouse.
However, the steep tariff on China is not expected to last long, according to the market veteran and founder of Helios Capital, Samir Arora. He argued that the fresh tariffs imposed on China are 'too high' and cannot be sustained without 'burning down one's own house'.
These 100 pct additional tariffs are so high that they cannot remain and therefore they will be withdrawn. No one will burn down his own house to teach a lesson to some neighbor.
October 12, 2025"These 100 pct additional tariffs are so high that they cannot remain and therefore they will be withdrawn. No one will burn down his own house to teach a lesson to some neighbour," he posted on X. Samir Arora's reaction comes on the back of Friday's bloodbath in the US market, which wiped off $2 trillion following Trump's warning to China through social media.
The 504-word post, which amounted to €4 billion value lost per word, saw President Trump flag 'weird things happening in China' as he called out the Xi Jinping's trade restriction strategy.
AdvertisementThe markets fell believing the US cannot sustain a trade war with China without reaching some of deal, especially considering the fact that the majority of Mag 7 companies like Nvidia rely heavily on trade with China.
Moreover, rare earth minerals are a key component in making semiconductor, electric vehicles. They also serve as raw material for making advanced missiles.
AdvertisementConsidering these factors, Samir Arora believes US' steep tariffs on China are not sustainable in the long run and may come down soon.
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