Beijing has warned Washington it will take countermeasures if US President Donald Trump follows through on his threat to impose new 100% tariffs on Chinese imports.
The warning comes after China introduced strict export controls on rare earth minerals last week, raising fears of a sharp escalation in trade tensions between the world’s two largest economies.
A spokesperson for China’s Ministry of Commerce said Sunday that threats of high tariffs are not the right way to negotiate. “If the US persists in acting unilaterally, China will resolutely take measures to safeguard its legitimate rights and interests,” the official said. “We do not want a tariff war, but we are not afraid of one.”
The renewed tensions have already rattled global markets. Investors are concerned about a repeat of the spring’s tit-for-tat tariff battle, when levies on Chinese and American goods soared to roughly 145% and 120%, respectively.
The escalation also casts uncertainty over upcoming trade talks. Trump and Chinese President Xi Jinping were expected to meet in South Korea in two weeks. But Trump’s criticism of Beijing’s rare earth restrictions has put that meeting in doubt.
Beijing, however, shows no sign of retreat. The ministry urged Washington to “correct its wrong approach” and preserve progress made in negotiations. The new rare earth rules were described as a “legitimate move,” while blaming Washington for escalating tensions.
The Chinese ministry highlighted the US introduction of new restrictive measures against China in September as the trigger for Beijing’s actions. Washington has recently added multiple Chinese firms to its export control list, expanded controls to their subsidiaries, and imposed special port fees on Chinese ships.
“The US actions have seriously harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks. China firmly opposes these moves,” the ministry said.
Beijing’s new rare earth controls include an expanded list of restricted minerals, curbs on production technologies, and limitations on their overseas use for military and semiconductor purposes. Analysts warn this could disrupt global industries that depend on these minerals for electronics, semiconductors, automobiles, and defense technologies.
Trump described China’s move on Truth Social as “extremely hostile” and a “moral disgrace.” Experts, however, note that Beijing’s measures mirror restrictions Washington has imposed on semiconductors over the years.
The ministry criticized US reactions as displaying “double standards,” highlighting that American export controls cover over 3,000 items compared with slightly more than 900 on China’s list. China has long opposed US rules that bar third-country companies from supplying China with chips made using American technology.
China’s adoption of similar export restrictions marks a shift in strategy. The ministry said the US has historically abused export controls under the guise of national security, adopting unilateral restrictions that extend beyond its borders. Beijing’s recent actions signal that it is willing to adopt comparable measures to protect its interests.
The escalating dispute underscores the fragility of US-China trade relations. Analysts warn that repeated confrontations over tariffs, rare earth minerals, and export controls could threaten global supply chains, economic stability, and the progress of bilateral negotiations.
Both nations face pressure to manage tensions carefully. Any misstep could impact not only trade but also geopolitical stability, as both countries rely heavily on these strategic minerals for critical technologies and military applications.
China’s warning serves as a strong signal that Beijing is prepared to respond decisively if the US implements the threatened 100% tariffs. Officials in both countries continue to monitor developments closely as global markets brace for further uncertainty.
