China signaled Sunday that it would pursue countermeasures in response to President Donald Trump’s threat to implement a 100% tariff increase, which threatens to derail months of progress in trade talks between the two nations.
China imposed export restrictions on rare earth minerals last week, prompting Trump to float the possibility of raising tariffs. The country vowed to stand firm against the United States.
“Resorting to threats of high tariffs is not the right way to engage with China,” the Ministry of Commerce said as part of China’s first comment on the threat.
“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 consistent — we do not want one, but we are not afraid of one.”
The U.S. and China were previously engaging in negotiations to avert a trade war. In April, both nations significantly escalated tariffs to over 100% until Trump reversed course and initiated a truce. Tariffs on Chinese goods currently stand at 30%.
The new tariff threat is poised to strain diplomatic relations between the world’s top two economies, as demonstrated by the cancellation of Trump’s bilateral meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation Summit in South Korea later this month.
Following China’s rollout of export controls, Trump said, “There seems to be no reason” to meet with Xi.
“Some very strange things are happening in China! They are becoming very hostile, and sending letters to Countries throughout the World, that they want to impose Export Controls on each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China,” Trump posted on Truth Social on Friday.
TRUMP ANNOUNCES 100% TARIFF INCREASE ON ‘VERY HOSTILE’ CHINA AND SHELVES XI MEETING
“Our relationship with China over the past six months has been a very good one, thereby making this move on Trade an even more surprising one,” he continued. “I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right! There is no way that China should be allowed to hold the World ‘captive,’ but that seems to have been their plan for quite some time.”
The additional 100% tariff on Chinese imports is expected to take effect on Nov. 1, although Trump said that could happen sooner. The U.S. is also expected to impose export controls on “any and all critical software” starting next month.
