China has firmly responded to U.S. President Donald Trump’s threat to impose 100 per cent tariffs on Chinese imports, urging Washington to pursue dialogue rather than confrontation.
In an official statement released on Sunday, China’s Commerce Ministry reiterated that while Beijing does not seek a tariff war, it is “not afraid of one.” The ministry emphasized that the U.S. should resolve trade differences “through negotiations instead of threats,” underscoring China’s readiness to defend its national and economic interests if provoked.
The remarks come after Trump warned of sharply higher tariffs by November 1 in retaliation for China’s new export restrictions on rare earth minerals, materials critical to global technology, defense, and manufacturing industries. The dispute has reignited fears of a renewed U.S.-China trade war, potentially derailing a planned meeting between Trump and Chinese President Xi Jinping.
“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the ministry said, cautioning that Beijing would take “resolute measures” if the U.S. escalates further.
The ministry also criticized recent U.S. export controls and expanded trade restrictions targeting Chinese companies, noting that Washington has ignored Beijing’s concerns. It clarified that China’s rare earth export licenses would continue for legitimate civilian uses, while maintaining oversight of materials with military applications.
China’s new regulations require foreign firms to obtain government approval before exporting products containing Chinese-sourced rare earths, regardless of where they are manufactured. Given that China controls about 70% of global rare earth mining and 90% of processing, the rules have far-reaching implications for industries worldwide — from defense systems and electric vehicles to smartphones and laptops.
Adding to the tension, both nations have introduced new port fees on each other’s ships. The U.S. tariffs are set to take effect on Tuesday, with China announcing reciprocal measures in response.
The standoff highlights the growing strategic and economic rivalry between the world’s two largest economies, with rare earth minerals emerging as a critical flashpoint in the global supply chain and technology competition.
