1. U.S. to impose 100% tariffs on China starting November 1, 2025. 2. Tariffs follow China's export controls on rare earth materials. 3. Additional export controls on critical software will be enforced. 4. Tariffs will stack on existing charges China already faces.
The imposition of hefty tariffs can harm trade relations and affect FXI's underlying stocks that are sensitive to export regulations and trade tensions, similar to the negative impacts seen during the U.S.-China trade war in 2018 when the FXI saw significant declines.
The announcement directly relates to U.S.-China trade relations, which heavily influence FXI's performance as it tracks Chinese companies.
The immediate effect of tariffs will likely cause volatility, similar to past tariff announcements leading to swift market adjustments.