Nicole Lapin

They are the backbone of everything from smartphones to microchips and advanced weapons systems.

So, in other words, they power our everyday lives and modern warfare.

China says the move is about national security, and the concern is rare earth elements in U.S.

military applications.

Like samarium, for example, it's a rare earth element used in the production of US F-35 fighter jets and missile systems.

China also announced new restrictions on exporting the equipment used to make EV batteries, a not so subtle move to protect its dominance in the global electric vehicle market.

President Trump fired back with a threat of 100% tariffs on Chinese imports.

For context here, the current tariffs are sitting at around 20%.

Plus, all of Trump's tariffs are under review by the Supreme Court, and they'll hear arguments on November 5th.

So will we see a 100% tariff?

Honestly, probably not.

This will be the return of the taco trade.

Plus, between the Supreme Court and how badly the economy does not want a 100% tariff on goods from China, this proposed tariff is probably just a bargaining chip.

Now, I want to hit pause on the story right here.

We'll get back to the wild market ride that followed.

But this exact moment when Trump fired off that Truth Social post about a 100% tariff is also a key moment in another story.

Just minutes before his post went live, an account on the crypto exchange Hyperliquid

opened a $700 million short position on Bitcoin and Ethereum.

The Truth Social post went live, the price of crypto coins and the stock market in general began to tank, and the trader began closing out their positions.

Estimates vary, but the trader seems to have made at least $160 million off the trade.