China has accused the United States of stoking new trade tensions after Donald Trump threatened to impose a 100% tariff on Chinese imports. Beijing called the threat “a clear example of double standards” and warned it could retaliate if Washington moves forward. A spokesperson for China’s commerce ministry said the country “does not want a trade war but will not back down from one.”
Trump intensifies tariff threats against China
Trump reacted sharply after Beijing tightened export rules for rare earth materials critical to high-tech industries. He accused China of acting “hostile” and attempting to hold the world “captive.” The former U.S. president also suggested he might cancel a planned meeting with President Xi Jinping later this month. On Sunday, Trump appeared to soften his tone. He wrote online: “Don’t worry about China, it will all be fine!” He called Xi “highly respected” and said both nations wanted to avoid an economic downturn.
Markets fall amid fears of renewed trade war
Trump’s comments sent global markets into a decline. On Friday, the S&P 500 index dropped 2.7%, its steepest fall since April. Asian markets mirrored the drop. On Monday, the Shenzhen Component Index fell more than 2.5%, while Hong Kong’s Hang Seng declined around 3.5%. Investors feared a renewed trade conflict could disrupt supply chains and slow economic growth worldwide.
Fragile trade agreement under pressure
In May, Washington and Beijing agreed to suspend triple-digit tariffs on each other’s goods, temporarily easing tensions. At that time, U.S. tariffs on Chinese imports had risen 30%, while China imposed a 10% levy on American products. Trump’s latest threat now risks unraveling that fragile truce and reigniting economic tensions between the two powers.
China defends export restrictions
China’s commerce ministry issued a written statement accusing the U.S. of abusing export controls and discriminating against Chinese companies. Officials defended China’s rare earth export rules as “necessary steps” to safeguard national and global security. “Tariff threats are not a solution,” the spokesperson said. “China seeks dialogue but will respond firmly if challenged.”
Rare earths become a tool of leverage
Beijing’s tightening of rare earth exports highlights its dominance over a key global resource. China produces nearly 90% of the world’s rare earths, essential for smartphones, solar panels, and electric vehicles. Analysts said the move signals China’s economic leverage and its readiness to protect strategic industries.
Trump-Xi summit faces uncertainty
The rising tension between Washington and Beijing appears aimed at strengthening each side’s negotiating position ahead of future talks. However, it remains unclear whether Trump and Xi will meet as planned at a summit in South Korea later this month. Both sides are preparing for tough negotiations that could once again reshape global trade relations.
