Written by The Banking Post
China has warned it will “resolutely” defend its interests after U.S. President Donald Trump threatened to impose 100% tariffs on Chinese imports by November 1, escalating tensions between the world’s two largest economies.
In a statement posted online Sunday, China’s Commerce Ministry urged Washington to resolve disputes through negotiation rather than coercion.
“China’s stance is consistent. We do not want a tariff war, but we are not afraid of one,” the ministry said.
Trump’s latest threat came in response to Beijing’s new restrictions on exports of rare earth elements — vital materials for military hardware and consumer electronics. The move risks derailing a planned meeting between Trump and President Xi Jinping and could end a fragile trade truce that briefly halted tit-for-tat tariffs earlier this year.
Beijing said export licenses for rare earth products would still be issued for legitimate civilian uses but noted the minerals’ military applications make them sensitive. China controls about 70% of global rare earth mining and roughly 90% of processing capacity.
The ministry accused Washington of escalating tensions by expanding its export control list of Chinese firms and introducing new port fees on Chinese ships, which take effect Tuesday. In retaliation, Beijing said it would impose equivalent port fees on U.S. vessels.
“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the ministry said, warning that China would “take corresponding measures” if the U.S. does not reverse course.
Both sides have accused each other of breaching the spirit of their trade truce, deepening uncertainty over future talks.
