China has issued a firm warning to the United States, stating it will not back down against President Donald Trump’s threat of a 100% tariff on Chinese imports.
The Chinese Commerce Ministry emphasized that while it does not seek a tariff war, it is prepared to defend its interests if the US continues with threats. The announcement comes after Trump indicated that tariffs on Chinese goods could rise by November 1, following China’s new restrictions on the export of rare earth elements, vital for both civilian and military technologies.
Escalating Tensions
Analysts say the move jeopardizes a possible meeting between Trump and Chinese President Xi Jinping and risks undoing the fragile truce in the ongoing trade dispute. Earlier this year, tariffs from both sides briefly topped 100 percent. China has repeatedly resisted such pressures, calling threats of high tariffs counterproductive and urging negotiations instead.
“If the US side insists on its approach, China will resolutely take measures to safeguard its legitimate rights and interests,” the ministry said, highlighting the need for dialogue to resolve differences.
Rare Earths at the Center
The standoff revolves around China’s new export controls on rare earths—critical minerals used in jet engines, radar systems, electric vehicles, laptops, and other electronics. China produces nearly 70% of the world’s rare earths and controls about 90% of global processing, giving it significant leverage. The ministry noted that export licenses will still be issued for legitimate civilian use, while military applications remain tightly regulated.
Reciprocal Measures
China also criticized the US for expanding export controls on Chinese companies and implementing port fees on Chinese vessels. In response, China announced port fees on American ships, further heightening tensions. Both sides accuse the other of violating the spirit of prior trade agreements.
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