By Alexandra Alper, Michael Martina, Jeffrey Dastin and Karen Freifeld
(Reuters) -The Trump administration is considering a plan to curb a dizzying array of software-powered exports to China, from laptops to jet engines, to retaliate against Beijing’s latest round of rare earth export restrictions, according to a U.S. official and three people briefed by U.S. authorities.
While the plan is not the only one being deliberated, it would make good on President Donald Trump’s threat earlier this month to bar “critical software” exports to China by restricting global shipments of items that contain U.S. software or were produced using U.S. software.
On October 10, Trump said in a social media post that he would impose additional tariffs of 100% on China’s U.S.-bound shipments, along with new export controls on “any and all critical software” by November 1 without further details.
To be sure, the measure, details of which are being reported for the first time, may not move forward, the sources said.
But the fact that such controls are being considered shows the Trump administration is weighing a dramatic escalation of its showdown with China, even as some within the U.S. government favor a gentler approach, according to two of the sources.
“I will confirm that everything is on the table,” U.S. Treasury Secretary Scott Bessent told reporters at the White House Wednesday when asked about software curbs on China. “If these export controls – whether it’s software, engines or other things – happen, it will likely be in coordination with our G7 allies.”
U.S. stock indexes dipped following the Reuters report, before paring losses. The S&P 500 closed down 0.5% while the Nasdaq was about 1% lower at the market’s close.
Emily Kilcrease, a former trade official now at the Center for a New American Security, said software was a natural point of leverage for the U.S. Still, such controls would be extraordinarily difficult to implement and would lead to blowback for U.S. industry, she said.
“You would hope they are only putting threats on the table that they would carry out and stick with,” Kilcrease said.
The White House declined to comment. The Commerce Department, which oversees export controls, did not respond to requests for comment.
A spokesperson for the Chinese embassy did not comment on the specific U.S. measures under consideration but said China opposed the U.S. “imposing unilateral long-arm jurisdiction measures” and vowed to “take resolute measures to protect its legitimate rights and interests” if the U.S. proceeds down what it views as a wrong path.
By Alexandra Alper, Michael Martina, Jeffrey Dastin and Karen Freifeld
(Reuters) -The Trump administration is considering a plan to curb a dizzying array of software-powered exports to China, from laptops to jet engines, to retaliate against Beijing’s latest round of rare earth export restrictions, according to a U.S. official and three people briefed by U.S. authorities.
While the plan is not the only one being deliberated, it would make good on President Donald Trump’s threat earlier this month to bar “critical software” exports to China by restricting global shipments of items that contain U.S. software or were produced using U.S. software.
On October 10, Trump said in a social media post that he would impose additional tariffs of 100% on China’s U.S.-bound shipments, along with new export controls on “any and all critical software” by November 1 without further details.
To be sure, the measure, details of which are being reported for the first time, may not move forward, the sources said.
But the fact that such controls are being considered shows the Trump administration is weighing a dramatic escalation of its showdown with China, even as some within the U.S. government favor a gentler approach, according to two of the sources.
“I will confirm that everything is on the table,” U.S. Treasury Secretary Scott Bessent told reporters at the White House Wednesday when asked about software curbs on China. “If these export controls – whether it’s software, engines or other things – happen, it will likely be in coordination with our G7 allies.”
U.S. stock indexes dipped following the Reuters report, before paring losses. The S&P 500 closed down 0.5% while the Nasdaq was about 1% lower at the market’s close.
Emily Kilcrease, a former trade official now at the Center for a New American Security, said software was a natural point of leverage for the U.S. Still, such controls would be extraordinarily difficult to implement and would lead to blowback for U.S. industry, she said.
“You would hope they are only putting threats on the table that they would carry out and stick with,” Kilcrease said.
The White House declined to comment. The Commerce Department, which oversees export controls, did not respond to requests for comment.
A spokesperson for the Chinese embassy did not comment on the specific U.S. measures under consideration but said China opposed the U.S. “imposing unilateral long-arm jurisdiction measures” and vowed to “take resolute measures to protect its legitimate rights and interests” if the U.S. proceeds down what it views as a wrong path.
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