China on Sunday reaffirmed that it would not yield to U.S. threats of a 100% tariff hike, urging Washington to resolve trade disputes through dialogue rather than coercion.
“China’s position remains consistent,” the Commerce Ministry said in an online statement. “We do not seek a tariff war, but we are not afraid of one.”
The warning came two days after President Donald Trump threatened to double tariffs on Chinese imports starting November 1, in response to Beijing’s new restrictions on exporting rare earth minerals, which are essential for both consumer and military products.
The escalating tensions could undermine a potential Trump-Xi meeting and end the fragile truce in a trade war that saw tariffs briefly exceed 100% in April.
“Relying on threats of high tariffs is not the proper way to engage with China,” the ministry said, calling on the U.S. to address concerns through negotiation. “If the U.S. insists on its approach, China will take resolute measures to protect its legitimate rights and interests.”
Both countries have accused each other of violating the spirit of the trade truce by imposing new restrictions. Trump has criticized China for becoming “very hostile” and restricting global access to rare earth metals and magnets.
Under China’s new regulations, foreign companies must obtain special approval to export products containing even minimal amounts of rare earth elements sourced from China. These minerals are vital for products ranging from jet engines, radar systems, and electric vehicles to laptops and smartphones.
China controls nearly 70% of global rare earth mining and about 90% of processing, making access a key point in trade negotiations with the U.S. The ministry said export licenses will still be granted for legitimate civilian uses but noted the minerals’ strategic military applications.
The statement also criticized recent U.S. measures, including expanding export controls on Chinese companies and introducing new port fees on Chinese ships. China announced last Friday that it would respond with reciprocal port fees on American vessels.
Source: AP