China Warns U.S. of Retaliation Over Trump’s 100% Tariff Threat
Beijing Condemns Trump’s Tariff Move, Promises “Firm Countermeasures”
Beijing has warned the United States of strong countermeasures if President Donald Trump follows through on his threat to impose 100% tariffs on Chinese imports.
The warning came after Washington escalated tensions in response to China’s new export restrictions on rare earth minerals, a move that has already shaken global markets and cast doubt on the future of U.S.–China trade talks.
In its first official response, a Chinese Ministry of Commerce spokesperson said on Sunday, “Resorting to threats of high tariffs is not the right way to engage with China. If the U.S. persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.”
The ministry added, “Our position on a tariff war remains unchanged — we do not seek one, but we are not afraid of one.”
Markets Rattled as Trade Tensions Rise Again
The renewed trade conflict between the world’s two largest economies has sparked concern among investors, with global stocks falling amid fears of another tit-for-tat tariff war.
Earlier this year, tariffs on Chinese and American goods reached 145% and 120%, respectively, severely disrupting industries ranging from manufacturing to consumer electronics.
Trump’s latest warning comes just two weeks before a planned meeting with Chinese President Xi Jinping in South Korea, raising doubts about whether the high-stakes summit will go ahead. Citing Beijing’s rare earth restrictions, Trump suggested that talks could be “pointless” under current conditions.
Meanwhile, Beijing continues to call for diplomacy. The commerce ministry urged Washington to “promptly correct its wrong approach” and “preserve the hard-won progress in negotiations.”
Rare Earth Controls Deepen Global Supply Chain Worries
China’s recently announced rare earth export controls include a longer list of restricted minerals and tighter regulations on their production and overseas applications — particularly in military and semiconductor technologies.
These minerals are critical to the global tech and defense industries, powering products like smartphones, electric vehicles, and fighter jets. The move is expected to increase pressure on Western manufacturers and reshape supply chains dependent on China’s rare earth dominance.
Beijing has defended the restrictions as a “legitimate move” necessary to protect national interests. It accused the Trump administration of escalating tensions by introducing a series of new trade and technology restrictions within just two weeks of the Madrid trade talks in September.
Washington Accused of “Double Standards”
In recent months, Washington has expanded its own export controls, blacklisting several major Chinese tech companies and extending restrictions to their subsidiaries. It also imposed special port fees for Chinese vessels — a move Beijing described as discriminatory and politically motivated.
“The U.S. actions have seriously harmed China’s interests and undermined the atmosphere of bilateral trade discussions,” said the Chinese commerce ministry spokesperson.
Trump, on the other hand, described China’s rare earth restrictions as “extremely hostile” and “a moral disgrace in dealing with other nations,” in a post on Truth Social.
However, trade analysts note that Beijing’s measures closely mirror U.S. semiconductor export bans, which prevent the sale of advanced chips and chipmaking tools to China — even when produced abroad with American technology.
Beijing Pushes Back Against U.S. Control Tactics
Beijing has long accused Washington of “abusing export controls” and using “national security” as a pretext to limit China’s growth. The commerce ministry pointed out that while the U.S. export control list covers over 3,000 items, China’s list includes just over 900.
“For a long time, the United States has overstretched the concept of national security and imposed unilateral restrictions that extend beyond its borders,” the spokesperson said.
By adopting similar tactics, China appears to be signaling a strategic shift — using its own economic leverage in the ongoing power struggle with Washington.
As the situation escalates, both nations now face growing pressure from businesses and allies to find common ground and prevent another round of global trade turmoil.