Trump weighs unprecedented export curbs that could hit everything from jet engines to laptops, escalating the economic war with Beijing.
WASHINGTON, D.C. — The United States is weighing an extraordinary escalation in its tech standoff with China — a plan to restrict nearly any export made using American software, from jet engines to smartphones, in response to Beijing’s rare earth export controls, according to U.S. officials briefed on the matter.
If implemented, the move would weaponize Washington’s dominance in global software architecture — the invisible backbone embedded in everything from chip design to navigation systems — effectively extending U.S. jurisdiction to vast swaths of the global supply chain.
President Donald Trump hinted at the measure earlier this month, threatening to block “any and all critical software” exports to China and to impose 100% tariffs on Chinese goods by November 1.
Officials say the proposal remains under review but signals that Washington is ready to test the outer limits of economic statecraft.
“I will confirm that everything is on the table,” said Treasury Secretary Scott Bessent, adding that any export curbs “will likely be in coordination with our G7 allies.”
The policy — reminiscent of post-Ukraine sanctions on Russia — would bar not just direct U.S. exports but also foreign-made goods that rely on American software tools, potentially upending trade flows and pressuring global manufacturers to choose sides.
A senior official familiar with the discussions said the idea “is to remind Beijing that software is America’s rare earth — and we can close the tap, too.”
Yet the economic risks are immense. Industry analysts warn that such restrictions could boomerang on U.S. tech firms, given how deeply American code and algorithms are integrated into international production.
“You’d hope they only make threats they can live with,” said Emily Kilcrease, a former trade official now at the Center for a New American Security.
China has condemned the potential move as “unilateral economic coercion,” vowing to retaliate if Washington proceeds.
Beijing’s Foreign Ministry accused the U.S. of “long-arm jurisdiction” and hinted that China could expand its own export bans beyond rare earth elements — materials vital for electronics, defense systems, and electric vehicles.
The stakes are rising as Trump prepares to meet Chinese President Xi Jinping later this month in South Korea.
The proposal, insiders say, could serve as leverage ahead of that summit, or as a warning that the U.S. is prepared to match Beijing’s restrictions with full-spectrum economic retaliation.
For now, the White House remains silent, but markets are already reacting. The S&P 500 and Nasdaq both fell sharply following news of the deliberations, as traders braced for what could become the most far-reaching U.S. export control in history.
