China said Sunday it will stand firm against President Donald Trump’s 100% tariff threat, warning the United States that confrontation will only deepen the China US tariff dispute. The Chinese Commerce Ministry urged Washington to settle trade differences “through dialogue, not intimidation.”
“China’s stance is consistent. We do not want a tariff war, but we are not afraid of one,” the ministry said in an online statement.
It was Beijing’s first official reaction after Trump threatened to raise import taxes by November 1, citing China’s new restrictions on the export of rare earth minerals — critical materials used in advanced electronics, renewable energy, and defense technology.
Trade Tensions Rise Ahead of Possible Trump–Xi Meeting
The renewed China US tariff dispute has cast doubt on a potential meeting between Trump and Chinese President Xi Jinping, which was expected to revive fragile trade talks.
Earlier this year, tariffs from both sides briefly topped 100%, hitting billions of dollars in goods. Economists warn that another escalation could slow global recovery and strain supply chains already disrupted by export controls.
Since returning to office, Trump has imposed higher taxes on imports from several key trading partners. Yet China remains the most significant target — and the least willing to concede under pressure.
“Frequently resorting to tariff threats is not the correct way to get along with China,” the Commerce Ministry said in its post, presented as answers from an unnamed spokesperson.
Beijing Warns of ‘Corresponding Measures’
In its statement, China emphasized that “issues should be resolved through mutual respect and negotiation.” However, it also issued a clear warning:
“If the U.S. obstinately insists on its actions, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.”
The ministry did not specify what those measures might include but hinted that export curbs and counter-tariffs could follow.
In addition to higher import taxes, Trump also threatened to impose export controls on what he called “critical software,” without providing details. Analysts say this could target artificial intelligence or semiconductor technologies vital to China’s industrial ambitions.
Rare Earths at the Center of the Dispute
The standoff began after China introduced new export licensing rules for rare earth elements. These minerals are essential for products ranging from fighter jets and radar systems to electric vehicles, smartphones, and wind turbines.
China produces nearly 70% of the world’s rare earths and processes about 90% of them globally, giving it enormous leverage in the trade relationship.
The Commerce Ministry said export permits would still be granted for “legitimate civilian uses” but noted that some rare earths have clear military applications.
New regulations also require foreign manufacturers to obtain Chinese approval before exporting items that contain Chinese-sourced minerals, regardless of where the products are made. This move could affect global supply chains — especially in the U.S., Japan, and Europe.
Washington Accuses Beijing of Breaking the Truce
Trump accused China of holding the world “hostage” by restricting access to rare earths. He said the new Chinese rules violate the spirit of a trade truce reached earlier this year.
Beijing rejected the claim, pointing out that the United States has expanded its own export controls and added more Chinese companies to restricted trade lists in recent weeks.
“It is the U.S. that has introduced multiple restrictions, while ignoring Chinese concerns,” the ministry said.
Port Fees Add Another Flashpoint
The tensions escalated further as the U.S. prepared to enforce new port fees on Chinese shipping starting Tuesday. In response, China announced similar fees on American vessels.
Beijing framed the decision as a “reciprocal and justified measure” under international trade norms.
Analysts say these tit-for-tat actions show that neither side is ready to compromise. “The China US tariff dispute is not just about economics — it’s about political leverage and technological dominance,” said Li Zhang, a trade expert at Renmin University.
Global Impact and Outlook
The latest confrontation has rattled markets and raised fears of another round of global supply chain disruptions. European and Asian manufacturers that rely on Chinese raw materials have already reported shipment delays.
Economists warn that if both nations continue to escalate, it could push global inflation higher and dampen investor confidence.
For now, Beijing insists it will defend its interests while keeping channels of communication open. “Dialogue remains the only path forward,” the Commerce Ministry said, signaling that China prefers negotiation but will respond forcefully if provoked.
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