The Trump administration is weighing new export controls that could restrict the global shipment of products made with U.S. software to China, sources told Reuters. The move, still under consideration, would fulfill Trump’s recent threat to block “critical software” exports in response to Beijing’s latest rare earth export limits.
If enacted, the plan could affect a vast range of industries — from aviation to consumer electronics — given that “everything imaginable is made with U.S. software,” one source said. Treasury Secretary Scott Bessent confirmed that the proposal is being studied “in coordination with G7 allies.”
The potential escalation comes just weeks before a planned meeting between Trump and Chinese President Xi Jinping in South Korea. China has criticized Washington’s unilateral actions and warned of “resolute countermeasures.” Analysts say such controls would be unprecedented in scope and could hurt U.S. businesses as much as Chinese ones.
Market reactions were immediate: major U.S. stock indexes fell after news of the deliberations. The administration may ultimately use the threat of restrictions as leverage in trade talks rather than fully implementing them.
