The Wharton finance professor said if the levies are lifted, the market is likely to pass new milestones.

President Donald Trump said Friday he would impose a 100% tariff on China “over and above any Tariff they are currently paying” effective November 1 – massively escalating his trade war amid a heated dispute over export controls on rare earths.

U.S. lawmakers and national security officials are increasingly alarmed that long-standing research ties between the U.S. and China could give China an advantage when it comes to developing new milita

China has further tightened export restrictions on rare earths ahead of talks between Presidents Donald Trump and Xi Jinping at the end of the month. The country produces over 90% of the world's processed rare earths and rare earth magnets and has used export restrictions to throttle shipments.

BEIJING () -Chinese rare earth magnet companies have been facing tighter scrutiny on export license applications since September, sources say, even before Beijing's move last week to expand controls over the critical minerals used in magnets.

Treasury Secretary Scott Bessent says U.S.-China communications have improved despite Beijing's combative response to recent American trade restrictions and sanctions.

European stocks were higher on Monday, with mining names gaining 1.8% amid a new tariff dispute between the U.S. and China.

The Philippines said Chinese coast guard and maritime militia vessels engaged in aggressive actions against its ships in the South China Sea.