After weeks of diffusing trade tensions, the US and China have resumed throwing punches. Yesterday, President Trump announced a 100% additional tariff on Chinese goods and export restrictions on “all critical software” on Nov. 1—a response to China going gloves off by imposing unprecedentedly strict export controls on rare earth metals this week.

He also said there’s “no reason” for him to meet China’s leader Xi Jinping two weeks ahead of their planned tete-a-tete.

Why is Trump so mad?

• Under regulations announced Thursday, China will require foreign companies producing goods containing Chinese rare earths to get approval from Chinese authorities to export them.
• Trump said that China is exploiting its “monopoly” power on rare earths, a group of 17 metals integral to tech like missiles, smartphone chips, and EV batteries.

Tough before talks: This move came despite the US and China agreeing in June on the outline of a deal that included loosening rare earths export restrictions. By throttling the supply of vital tech used by American companies, including US military contractors, experts say China is trying to get leverage in trade negotiations with Trump. China also took other muscle-flexing actions this week, like opening an antitrust probe of American chipmaker Qualcomm’s recent acquisition of Israeli semiconductor firm Autotalks.

China’s trump card

Rare earths aren’t actually…rare, since many countries, including the US, have deposits. But China controls around 60% of rare earths mining—a process that comes with heavy environmental costs—and over 90% of processing, according to the International Energy Agency.

It’s not just a problem for the US: Foreign companies that export products containing Chinese rare earths are caught in the crossfire. Germany said it’s working with the EU to boost rare earths production in Europe.

As the stock market flashed red…investors piled into safe haven assets like US government bonds and gold, as well as shares of US-based rare earths producers, sending their stocks surging.—SK

Palestinians return to northern Gaza as Israeli troops withdraw. Under the terms of a US-brokered ceasefire that Israel and Hamas agreed to this week, Israel pulled its troops back from part of Gaza yesterday, though it still controls about 50% of the territory. That prompted tens of thousands of displaced Palestinians to begin returning to northern Gaza, which has been devastated by Israeli air strikes. The 20 living hostages being held by Hamas are expected to be released on Monday under the deal, which has raised hopes among both sides for a permanent end to the war. However, thorny issues regarding the postwar administration of Gaza still need to be resolved.

Trump admin begins mass layoffs as shutdown drags on. Making good on threats issued before the government shutdown began on Oct. 1, the Trump administration sent layoff notices to thousands of federal government employees yesterday. Allies of the president blamed the layoffs on Democrats’ refusal to pass a budget, while Democratic lawmakers accused the administration of taking advantage of the shutdown to make an unprecedented move. If the shutdown is not resolved, federal workers who do still have jobs and military service members will miss their first full paychecks next week.

MIT rejects Trump’s deal for priority funding. The university became the first school to decline the Trump administration’s offer for priority in accessing federal funding in exchange for signing an agreement to adopt policies consistent with Trump’s political agenda, which was recently made to nine universities. MIT President Sally Kornbluth said in a letter that although the university already meets or exceeds many of the deal’s standards, signing on would conflict with the university’s “core belief that scientific funding should be based on scientific merit alone.” The White House wants universities to respond to the offer by Oct. 20.—AR

JPMorgan Chase isn’t taking any security chances at its shiny new $3 billion headquarters in Midtown Manhattan, so it’s requiring employees to offer up biometric data in order to access the building, the Financial Times reports.

We don’t need no stinking badges: Though the bank initially called it voluntary, biometric access is now “required” to get into the skyscraper at 270 Park Avenue, according to the FT, which cited internal communications.

That means that instead of scanning badges, employees will have to take a more hands-on approach, offering up their palms or fingerprints. Ocular scans are also possible, so building access could be denied in the blink of an eye. The stricter measures come on the heels of a deadly shooting in July at a nearby building that houses the NFL headquarters and other offices.

The house that Jamie Dimon built

More than 10,000 JPMorgan employees will be working in the HQ when it fully opens later this year. Once they make it past security, they’ll be treated to 60 floors of form, function, and finance. According to Fortune, the new facility will have:

• A 19-restaurant food court and an Irish pub.
• An art collection, plus lighting to match workers’ circadian rhythms.
• Its own signature scent.

It’s just the beginning: JPMorgan plans to renovate other nearby buildings, creating an entire multi-block campus as it stresses in-office working for its staff.—BC