Markets Sink Over 800 Points Amid Tariff Tensions With China

By John DiMauro | October 11, 2025

October 11, 2025 7.30 am

Wall Street ended Friday with a sharp sell-off, as the Dow Jones Industrial Average plunged more than 800 points in a single session. The steep decline came after reports that the United States is preparing to impose 100 percent tariffs on Chinese imports if Beijing fails to reach an agreement with Washington by November 1st. The move, analysts say, would double down on existing tariffs and potentially escalate the ongoing trade conflict between the world’s two largest economies.

The sell-off was driven by investor fears that rising tensions could spill over into a broader economic slowdown. China has recently signaled its intent to curb rare earth minerals, a critical resource for high-tech and defense industries, in what some see as an attempt to pressure Western economies. In addition, reports have surfaced of Chinese authorities detaining foreign vessels in certain ports, heightening geopolitical concerns and fueling uncertainty across global markets.

Former President Donald Trump, who has taken a hardline stance on China’s trade practices, reiterated Friday that Beijing has until November 1st to reach a new understanding on trade and export policy—or face sweeping tariffs. “China has acted irresponsibly and irrationally,” Trump said, noting that the United States would respond decisively if no progress is made. The proposed tariffs would apply across a wide range of goods, from electronics and automotive parts to consumer goods and raw materials.

As the weekend approaches, investors are expected to remain on edge, awaiting clarity from both Washington and Beijing. The uncertainty could lead to further market volatility when trading resumes Monday.

Analysts say the upcoming Korea summit, where U.S. and Chinese officials are expected to meet, could offer a diplomatic off-ramp if cooler heads prevail.

For now, Wall Street is holding its breath. Whether the latest tariff threat is a negotiating tactic or the beginning of a new trade escalation remains to be seen—but the stakes for global markets, and for consumers around the world, could not be higher.