China Vows Retaliation as Trump Threatens New Tariffs on Chinese Imports

Beijing has pledged countermeasures against the United States if President Donald Trump follows through on his threat to impose a 100% tariff on all Chinese imports, escalating tensions sparked by China’s recent export restrictions on rare earth minerals.

The threat from Trump came after China announced a raft of export controls on rare earth minerals last week, materials critical to the production of electronics, semiconductors, and military equipment. A Ministry of Commerce spokesperson stated Sunday, “Resorting to threats of high tariffs is not the right way to engage with China,” adding, “If the US persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.” This dispute raises concerns about a potential disruption to global supply chains already strained by geopolitical factors.

The escalating trade war between the world’s two largest economies has already rattled investors, recalling the tit-for-tat tariffs imposed in the spring, which reached levels of around 145% and 120% on Chinese and American imports respectively. Trump has also cast doubt on a planned meeting with Chinese leader Xi Jinping in South Korea in two weeks, citing the rare earths issue. China maintains its actions are a legitimate response to restrictive measures imposed by the US, including additions to its export control list and special port fees for Chinese ships, as detailed by the Council on Foreign Relations.

Beijing described its new rules on rare earths as a “legitimate move” and urged Washington to “promptly correct its wrong approach” and “preserve the hard-won progress in negotiations.” The commerce ministry also pointed to the US’s extensive use of export controls, noting that the US export control list covers more than 3,000 items compared to China’s list of just over 900. Further details on the evolving trade relationship can be found at the International Trade Administration.

Officials in Beijing indicated they are prepared for further escalation, but continue to call for a return to dialogue and a resolution based on mutual respect.