Beijing has warned it will take “resolute countermeasures” if U.S. President Donald Trump proceeds with his plan to impose a 100% tariff on Chinese imports, escalating tensions just weeks ahead of a potential Trump–Xi meeting in South Korea.
China’s Ministry of Commerce called Washington’s tariff threats “unilateral and misguided,” urging the U.S. to “promptly correct its wrong approach” and preserve recent progress in trade talks.
“We do not want a tariff war, but we are not afraid of one,” the ministry said.
The dispute follows Beijing’s decision last week to tighten export controls on rare earth minerals, essential to global tech and defense manufacturing. The U.S. labeled the move “hostile,” while Beijing defended it as a legitimate national security measure — a mirror response to Washington’s own semiconductor export bans.
Financial markets tumbled on the renewed trade friction, with fears of a repeat of the spring’s tit-for-tat tariff battle, when duties on both sides soared beyond 120%. China blamed the U.S. for reigniting tensions, citing its recent decision to add more Chinese firms and subsidiaries to its export control list and impose special port fees for Chinese vessels.
Experts said Beijing’s rare earths restrictions — which now cover more than 900 minerals and processing technologies — could strain global supply chains for electronics, semiconductors, and electric vehicles.
Meanwhile, Trump accused China on Truth Social of acting in an “extremely hostile” manner and hinted he may cancel his meeting with Xi Jinping, though he later said he’d still attend the summit “regardless.”
Analysts see China’s latest stance as an effort to demonstrate parity in the economic power play, adopting tactics long used by Washington.
“The U.S. has abused export controls for years,” the commerce ministry said. “China’s actions are a measured and legitimate response.”
