America’s next move could cripple China’s tech: What happens if they pull the trigger?

President Donald Trump is weighing sweeping new export controls that could block a wide range of software-based products from reaching China, in retaliation for Beijing’s latest restrictions on rare earth exports, Bloomberg reported.

The potential measure—still under consideration—would restrict global shipments of items made with U.S. software or using U.S. software tools, including laptops, semiconductors, and even jet engines, according to one U.S. official and three sources briefed by the government.

“Everything imaginable is made with U.S. software,” one source said, underscoring the potentially massive reach of the proposed controls. While it’s unclear whether the plan will move forward, the very fact that it’s on the table signals a dramatic escalation in U.S.–China tech tensions.

Trump previously vowed to impose 100% tariffs on Chinese imports and to restrict “any and all critical software” exports starting November 1. The export control proposal would be the first concrete move to follow that statement, just weeks before his expected meeting with Chinese President Xi Jinping in South Korea.

The White House and Commerce Department declined to comment. A spokesperson for the Chinese embassy said Beijing opposes “unilateral long-arm jurisdiction measures” and warned of “resolute” retaliation if Washington proceeds.

Inside the U.S. administration, opinions are divided. Some officials support a more measured approach, while others push for aggressive action in response to China’s expanded rare earth export restrictions.

The measure would mirror similar Biden-era tech export curbs on Russia and could reshape global trade in technology goods—hurting both Chinese manufacturers and U.S. suppliers.

Analysts warn that while the move could pressure China’s tech ambitions, it also risks blowback for American firms, particularly in the semiconductor and electronics sectors.