Why has US-China trade war restarted and how have markets reacted?

"Why has the US-China trade war restarted? On Thursday, China's commerce ministry announced enhanced restrictions on the export of rare earths, citing national security concerns. China's chokehold on the global supply chain of rare earths minerals found in the Earth's crust that are used to make everything from consumer electronics to cars to military equipment has been a sticking point in the trade war. China produces more than 90% of the world's processed rare earths and controls about 70% of the world's mining."

"Trump responded by calling China's decision extremely hostile and announcing across the board tariffs of 100% on Chinese imports. As of 25 September, average US tariffs on Chinese imports reached 58%, while Chinese tariffs reached 33%, according to analysis by the Peterson Institute for International Economics. Higher tariffs reaching nearly 150% have been threatened but are on pause before a 10 November deadline to reach a deal."

China announced enhanced restrictions on the export of rare earths, citing national security concerns. Rare earths are minerals used in consumer electronics, cars, and military equipment. China produces more than 90% of the world's processed rare earths and controls about 70% of global mining. The United States had earlier tightened controls on exports of chip making equipment to China to limit access to advanced semiconductors. The US president called China's move extremely hostile and announced 100% tariffs on Chinese imports. Average US tariffs on Chinese goods reached 58% and Chinese tariffs 33% as of 25 September, with higher tariffs threatened and a 10 November deadline for a potential deal.

Read at www.theguardian.com