China on Sunday reaffirmed that it will not back down in response to President Donald Trump’s threat to impose a 100 percent tariff on Chinese imports, urging the US to resolve trade disputes through dialogue rather than intimidation.
“China’s stance is consistent,” the Commerce Ministry said in an online statement. “We do not want a tariff war, but we are not afraid of one.” The statement followed Trump’s warning that tariffs on Chinese goods could be raised by November 1, in retaliation for new Chinese restrictions on rare earth exports, essential for both consumer and military products.
Tensions Threaten Trade Talks
The escalating rhetoric threatens to derail a potential meeting between Trump and Chinese President Xi Jinping, potentially ending the fragile truce in the ongoing tariff war. Earlier this year, tariffs from both countries briefly exceeded 100 percent.
Trump has imposed higher tariffs on imports from multiple trading partners this year, seeking concessions in return for reductions. China, relying on its economic clout, has resisted pressure, emphasizing that high tariffs are not the correct approach.
“If the US side obstinately insists on its practice, China will resolutely take corresponding measures to safeguard its legitimate rights and interests,” the ministry statement warned, calling for disputes to be resolved through dialogue and negotiation.
Rare Earths at the Heart of the Dispute
The confrontation stems from China’s new rules requiring foreign firms to obtain special approval to export products containing even traces of rare earth elements sourced from China. These minerals are critical for jet engines, radar systems, electric vehicles, laptops, and other consumer electronics.
China controls nearly 70 percent of global rare earth mining and roughly 90 percent of processing, making access a critical leverage point in trade talks. The ministry clarified that export licenses would still be granted for legitimate civilian uses, while acknowledging the minerals’ military applications.
Reciprocal Measures and Rising Friction
China accused the US of introducing new restrictions in recent weeks, including expanding the list of Chinese firms subject to US export controls and implementing port fees on Chinese vessels. China has responded by announcing retaliatory port fees on American ships, further intensifying the standoff.
Both sides accuse each other of violating the spirit of prior agreements, and analysts warn that without negotiation, the US-China trade conflict could escalate further, impacting global supply chains and markets.
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