Trump has, like his predecessor, limited exports of high-end semiconductor chips to China. He also stopped the export of machines and chemicals used to produce chips to China. These measures are extra-territorial. The Dutch company ASML is prohibited to sell its high-end machines for chip production to China because parts of them contain goods or software made in the U. S. of A.

After Trump imposed additional high tariffs on goods from China the country hit back by limiting exports of rare earth elements. China has a near monopoly on these elements. These are needed to produce modern electric motors, magnets and various sensors and semiconductors the U.S. needs. China has also stopped the import of soy-beans, one of the main products U.S. mid-west farmers depend on.

Trump had to pull back and did so. Tariffs were temporarily lowered and negotiations with China continued. A new trade agreement was supposed to signed later this month when President Trump and President Xi would meet in South Korea.

But U.S. negotiators under Secretary of Commerce Howard Lutnick tried to play hardball. In late September, during the talks,  they imposed further restrictions on China:

On September 29, 2025, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) released a long-anticipated interim final rule (IFR) that will result in the most dramatic expansion of U.S. export control regulations in years. The IFR, "Expansion of End-User Controls To Cover Affiliates of Certain Listed Entities," extends export restrictions to any company owned 50% or more, directly or indirectly, by any of the thousands of entities already designated on several Commerce and Treasury Department lists.

The IFR would also impose a new duty on exporters to investigate the ownership of an end user where there is reason to believe a designated entity holds a minority stake, or is affiliated with, the end user, subject to a strict liability standard for violations.

The new measures would severely restrict any export of high tech goods to China.