China has accused the United States of risking a new global trade war after Donald Trump threatened to impose a 100% tariff on Chinese goods. Beijing called the move “a blatant act of double standards” and said it might take countermeasures if Washington follows through. A spokesperson for China’s commerce ministry declared that China “does not want a trade war, but is never afraid of one.”
Trump’s latest tariff threat sparks international concern
Trump’s comments came after China tightened export rules for rare earth materials used in high-tech manufacturing. He accused Beijing of turning “very hostile” and of trying to hold the world “captive.” The former U.S. president even suggested he might cancel a planned meeting with Chinese leader Xi Jinping later this month. By Sunday, Trump appeared to soften his stance, writing online: “Don’t worry about China, it will all be fine!” He described Xi as “highly respected” and said both countries wanted to avoid an economic depression.
Markets shaken as investors fear new trade conflict
Trump’s remarks sent financial markets sliding. On Friday, the S&P 500 index dropped 2.7%, its sharpest fall since April. The reaction spread across Asia, where the Shenzhen Component Index fell more than 2.5% and Hong Kong’s Hang Seng declined by 3.5%. Analysts said investors were bracing for a potential escalation that could once again disrupt global supply chains.
Trade truce between Beijing and Washington under threat
In May, both sides had agreed to suspend triple-digit tariffs on each other’s goods, briefly easing tensions. At that time, U.S. tariffs on Chinese imports had already increased by 30%, while China had placed a 10% levy on American goods. Trump’s new tariff warning now puts that fragile truce in jeopardy, raising fears of another economic standoff.
China rejects accusations and defends export measures
In a written statement, China’s commerce ministry accused Washington of abusing export control laws and unfairly targeting Chinese companies. Officials described China’s export restrictions on rare earths as “legitimate steps to safeguard national and global security.” “Tariff threats are not a path to cooperation,” the spokesperson said. “China’s position has always been clear: we value stability, but we will defend our interests.”
Rare earths emerge as key weapon in economic rivalry
Beijing’s decision to tighten control over rare earth exports highlights its dominance in a vital global sector. China processes nearly 90% of the world’s rare earth elements, essential for smartphones, electric vehicles, and renewable energy systems. Experts say the move sends a signal to Washington that Beijing holds powerful leverage in the global tech economy.
Trump-Xi summit uncertain as tensions intensify
The escalating exchange between Washington and Beijing appears to be part of a calculated strategy ahead of future trade talks. Yet doubts now hang over the planned meeting between Trump and Xi at a summit in South Korea later this month. Both sides seem unwilling to back down, leaving the world watching closely as the two powers edge closer to another high-stakes economic clash.
