Beijing, October 2025: China on Sunday strongly pushed back against U.S. President Donald Trump latest threat to impose a 100% tariff on Chinese imports, calling it an “incorrect way to get along” and urging the U.S. to settle differences through dialogue rather than confrontation.
In a statement posted online, the Chinese Ministry of Commerce reaffirmed its position, saying:
China stance is consistent. We do not want a tariff war, but we are not afraid of one.
The response follows Trump announcement that he would double tariffs on Chinese imports by November 1, citing new Chinese restrictions on rare earth exports — key materials used in consumer electronics and military hardware.
Beijing: Tariff Threats Are Not the Right Approach
The Chinese Commerce Ministry criticized Washington approach, stating that “frequently resorting to the threat of high tariffs is not the correct way to get along with China.”
The ministry emphasized that concerns should be addressed through negotiations, not threats.
It also warned that if the U.S. proceeds with its actions, China will take corresponding measures to safeguard its economic interests and sovereignty.
If the U.S. side obstinately insists on its practice, China will resolutely take measures to defend its legitimate rights, the statement added.
Rare Earths at the Center of the Dispute
This latest escalation threatens to derail a possible meeting between Trump and Chinese President Xi Jinping, which aimed to stabilize trade relations after a brief truce earlier this year.
The dispute centers around rare earth elements — vital minerals used in jet engines, radar systems, electric vehicles, smartphones, and other advanced technologies.
China new rules require foreign companies to obtain special approval to export products containing even small amounts of Chinese-sourced rare earths.
While Beijing insists licenses will still be issued for civilian uses, it notes the materials’ strategic military value.
China’s Global Rare Earth Dominance
China remains the dominant force in the rare earth industry — accounting for nearly 70% of global mining and 90% of global processing capacity.
This dominance gives Beijing significant leverage in trade negotiations with Washington.
Meanwhile, the U.S. has also introduced new export controls on Chinese companies and increased port fees on Chinese vessels, which will take effect on Tuesday.
In response, China announced reciprocal port fees on American ships starting the same day.
Global Impact
The renewed tariff tensions have rattled global markets and reignited fears of another U.S.–China trade war. Analysts warn that extended hostilities could disrupt global supply chains, increase costs for consumers, and further strain diplomatic ties.
Both sides continue to accuse each other of violating the spirit of the trade truce, leaving future negotiations uncertain.
