U.S. President Donald Trump threatened Friday to impose a 100% tariff on Chinese imports starting next month in response to new Chinese export controls. CBS News MoneyWatch correspondent Kelly O'Grady has more details.

Washington

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

President Trump has threatened to impose a 100% tariff on Chinese goods, in addition to the existing 30% tariff, in response to China's decision to tighten regulations on rare earth exports. This announcement led to a sharp decline in financial markets, with the Dow and NASDAQ experiencing their largest drops in months. 

Although markets partially recovered after Trump reassured the public on social media, uncertainty remains high. Investors are concerned about the potential impact of the tariffs, particularly as the Federal Reserve considers its next move amid limited economic data due to a government shutdown. The situation has revived memories of previous US-China trade disputes and highlighted the influence of trade policy on global markets.

Trump escalates U.S.-China trade war

President Trump seemingly reignited the US-China trade war after threatening China with a 100% tariff. That's on top of the 30% tariff that's already in effect. Trump made the announcement on Friday in response to Beijing tightening up its rules for rare earth exports needed to produce several electronics. Financial markets showed major signs of concern following those comments, but they regained a bit of traction after the president posted on social media that, quote, it will all be fine. Let's go to CBS News Monarch correspondent Kelly O'Grady to help us make sense of this uncertainty. Kelly, we talk about uncertainty all the time. We're still talking about uncertainty. So how are the markets reacting to that threat from the president? Yes, so you are seeing the markets rebound quite significantly, not completely washing out those losses that we saw on Friday. The Dow was down close to 900 points, the NASDAQ down over 800 points. So Friday was the biggest sort of drop that we have seen in months when it comes to the market for a change in the tariff strategy. That being said, the president walked back some of those threats, sort of, but we still have that 130% tariff that would set to take effect November 1st. He didn't go so far as to walking that back. But again, investors taking heart from a little bit of the calming down in the rhetoric. What I do want to highlight, though, is this is the first big sort of visceral reaction we've seen from investors in months when it comes to tariffs. And it's for three reasons, Mugu. One, everyone remembers that Trump 1.0, the trade war, that, yes, there were moments where it looked like Beijing and the U.S. were going to make a deal, but it actually took over two years. So I think investors were going, oh, gosh, I have PTSD from that. It's a groundhog day. This is the second time around. And then the other part of it is that if you have a 130% tariff that goes into effect on November 1st, because remember, we've got that 30% tariff and it would be 100% on top of it. Let's think about what the Fed is going to do at the end of October when they meet. They don't have the data that we've talked about before because of the government shutdown, and then they have the prospect of this looming tariff. You could see them say, I'm just going to wait and see. I'm going to pause on making any interest rate moves. And that's also why you saw that visceral reaction in the market on Friday, because investors want interest rate cuts. Now, like I said, we're seeing that rebound today, but I think it really does speak to China and the tariffs. This is really that thing that can move the market that investors get concerned about.

U.S. President Donald Trump is heading back to the U.S. after his whirlwind trip to the Middle East, where he celebrated the first phase of a peace plan between Israel and Hamas.

Sharm El-Sheikh

Middle East Conflict

Trump, world leaders sign Gaza peace plan and discuss next steps

The government shutdown entered its third week on Monday as the Senate is set to reconvene on Tuesday. CBS News' Nikole Killion has more from Capitol Hill.

Shutdown drags into third week as Senate set to reconvene

Madagascar's President Andry Rajoelina has been flown out of the country in a French military plane, officials have said, after an elite army unit defected to join thousands of protesters demonstrating against corruption and poverty.

Antananarivo

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U.S. President Donald Trump was greeted in Tel Aviv with cheers and a military ceremony as he met families of hostages held in Gaza and addressed Israel's parliament. He now travels to Sharm El Sheikh, Egypt, to join world leaders in discussions on Gaza's future.

Tel Aviv-Yafo

Trump meets with Israeli leaders and hostage families

Twenty living hostages were released by Hamas after more than two years in captivity as a ceasefire continues to hold. Families in Israel describe emotional reunions while others continue to await confirmation about missing relatives.

Families reunite as ceasefire brings hostages, prisoners home

Israeli officials have confirmed that all 20 living captives have been released in Gaza.

Israel confirms all 20 living captives in Gaza have been released

The carefully choreographed Israel-Hamas exchange is underway, with Israel set to release around 2,000 Palestinian prisoners following the release of remaining hostages held in Gaza. Noga Tarnopolsky reports from Tel Aviv’s Hostage Square.

Israel-Hamas swap begins as 2,000 Palestinian prisoners set for release

Following his visit to Israel, President Trump will stop in Egypt to co-host a major summit in Sharm el-Sheikh alongside Egyptian President Abdel-Fattah el-Sissi. The meeting will bring together leaders from more than 20 countries to discuss efforts toward peace in Gaza and the wider Middle East.

Donald Trump to co-host chair Gaza peace summit in Egypt

The French presidency announced Prime Minister Sebastien Lecornu's new cabinet line-up on Sunday (October 12), with most top jobs remaining unchanged at a time when opponents are demanding a political shift to win their support for urgent budget talks.

Paris

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Seven captives have been handed over to the Red Cross, who will facilitate their transfer to Israeli forces.

Israeli military says Red Cross has received 7 captives in Gaza

On his way to the Middle East, U.S. President Donald Trump told reporters he expects the ceasefire between Israel and Hamas to hold, despite concerns Hamas won’t abide by the deal.

Trump says the 'war is over', Gaza rebuild to start immediately

China on Sunday (October 12) called U.S. President Donald Trump's latest tariffs on Chinese goods hypocritical and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products.

Beijing

Beijing blames U.S. for trade tensions, defends rare earth curbs

Afghanistan and Pakistan said they killed dozens of each other's troops during a night of heavy border clashes between the two countries. Afghanistan's Taliban forces launched attacks on Pakistani troops along their shared border in what it called "retaliation for air strikes carried out by the Pakistani army on Kabul".

Chaman

Border clashes between Afghanistan and Pakistan leave dozens dead

A ceasefire between Israel and Hamas held in Gaza for a third day ahead of the expected release of Israeli hostages and Palestinian prisoners and an address by U.S. President Donald Trump to Israel's parliament.

Ceasefire holds in Gaza ahead of hostage release, Trump visit

Zelenskyy called Trump for a second consecutive day to discuss defence and Ukraine's energy sector. It comes as Russia further intensifies its attacks on Ukraine's critical infrastructure ahead of its harsh winter.

Kyiv

Ukraine Invasion

Zelenskyy has second call with Trump amid Russian strikes

On Sunday, the minister of armed forces in Madagascar acknowledged an officer selected by a military group supporting demonstrators calling for President Andry Rajoelina to resign as the country's new army chief.

Madagascar’s president says coup underway

With a trade war between the U.S. and China intensifying ahead of a Nov. 1 tariff deadline, there’s growing concern Beijing will use Taiwan as a bargaining chip.

Taipei City

Growing fear China will use Taiwan to bargain with U.S.

In a televised address ahead of the planned release of Israeli captives and Palestinian prisoners, Israeli Prime Minister Benjamin Netanyahu called for unity despite ongoing divisions.

Netanyahu urges Israel put aside ‘differences’ with Gaza

U.S. President Donald Trump blamed Democrats for his decision to lay off thousands of workers across the U.S. government as he followed through on his threat to cut the federal workforce during the government shutdown.

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Thousands gathered in Tel Aviv as 48 of the last remaining hostages are expected home after two years of the Israel-Hamas war. The crowd cheered Donald Trump as the peace deal's broker but there were jeers for Israeli Prime Minister Benjamin Netanyahu.

Tel Aviv braces for hostage release planned for Monday

Diane Keaton, the Oscar-winning star of Annie Hall and The Godfather films, died Saturday at the age of 79, according to U.S. media reports. Entertainment journalist Johanna Schneller remembers Keaton as 'feisty and funny'.

Hollywood

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Former President Biden is now receiving radiation and hormone therapy to treat his prostate cancer, an aide said. The cancer is considered aggressive.

Biden receiving radiation, hormone therapy to treat aggressive cancer

It is unclear how many people were inside the Tennessee plant that exploded on Friday, but at least 16 people were reported on Saturday. Sheriff Chris Davis announced that there are no survivors. Nicole Valdes reports.

Tennessee

No survivors in Tennessee plant explosion, sheriff says

Thousands of pro-Palestinian protesters in London marked two years since the War in Gaza. However, the British government has seen enough. Haley Ott reports that police have been given sweeping powers to curb repeated demonstrations.

London

British Parliament designates Palestine Action a terrorist organization

Middle East Envoy Steve Witkoff has addressed hundreds of thousands of Israelis in what's known as “Hostages Square” in Tel Aviv. Witkoff hailed President Donald Trump for securing the ceasefire. The crowd was less receptive to his praise for Benjamin Netanyahu.

U.S. envoy booed for praising Netanyahu at Tel Aviv rally

A ceasefire is in effect between Hamas and Israel after just over two years of war. An exchange of Israeli hostages and Palestinians held prisoner is set to take place in the coming days, and U.S President Donald Trump is set to visit the region on Monday.

Trump set to visit Middle East as peace plan take effect

The families of hostages taken by Hamas on Oct. 7, 2023 are eagerly awaiting the return of their loved ones. The peace deal between Israel and Hamas would see the hostages returned within 72 hours of its implementation Friday.

Families of hostages in Gaza await their release

Ukrainian President Volodymyr Zelenskyy says he's had phone calls with Prime Minister Mark Carney and U.S. President Donald Trump about defence and energy infrastructure. Russian strikes have led to widespread blackouts in Ukraine.

Trump holds call with Zelenskyy after Russian strikes

Gaza City lies in devastation — returning Palestinians find their homes reduced to rubble and familiar streets erased. It comes after a U.S-brokered peace deal came into effect.

Sderot

Gaza City in ruins as Palestinians return to find only rubble

About 200 U.S. troops have begun arriving in Israel to set up a coordination center aimed at facilitating the flow of humanitarian aid, as well as logistical and security assistance into Gaza. They are not expected to enter the territory.

Trump escalates U.S.-China trade war

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