China has condemned the United States after Donald Trump threatened to impose a 100% tariff on Chinese goods. Beijing called the move “a textbook case of double standards” and warned it could introduce countermeasures if Washington escalates. A spokesperson for China’s commerce ministry said the country “does not want a trade war, but will never back down from one.”
Trump reignites confrontation with Beijing
Trump reacted angrily after China tightened export rules for rare earth materials. He accused Beijing of becoming “hostile” and attempting to hold the world “captive.” The former U.S. president even hinted he might cancel an expected meeting with President Xi Jinping later this month. Yet two days later, his tone shifted. On Sunday, Trump wrote online: “Don’t worry about China, it will all be fine!” He called Xi “highly respected” and said both countries wanted to prevent a global depression.
Markets slump as investors fear trade war return
Trump’s latest threat triggered an immediate reaction from global investors. On Friday, the S&P 500 index dropped 2.7%, marking its steepest fall since April. Asian markets followed suit. On Monday, the Shenzhen Component Index fell more than 2.5%, while Hong Kong’s Hang Seng tumbled around 3.5%. The renewed rhetoric between Washington and Beijing reignited fears of a fresh trade conflict.
Fragile trade peace at risk once again
In May, both countries agreed to suspend triple-digit tariffs on each other’s products. The move had briefly lifted hopes of stabilizing relations. Earlier in the year, U.S. tariffs on Chinese goods had risen by 30%, while China imposed a 10% tariff on American exports. Trump’s latest comments now threaten to dismantle that fragile progress and reheat global tensions.
China defends its export policy and hits back
China’s commerce ministry responded firmly in a written statement. Officials accused Washington of “abusing export controls” and “discriminating” against Chinese companies. They defended the country’s rare earth export rules as “necessary steps” to safeguard national and global security. “Tariff threats solve nothing,” the spokesperson said. “Our approach remains clear — we prefer dialogue, but we are not afraid of confrontation.”
Beijing tightens control over rare earth dominance
China’s decision to restrict rare earth exports underscores its strength in a vital global industry. The country processes about 90% of the world’s rare earths, essential for products such as smartphones, electric vehicles, and solar panels. Analysts view the move as a strategic message that Beijing is ready to protect its technological and economic interests.
Summit between Trump and Xi in question
The rising tension between Washington and Beijing appears to be a calculated move ahead of new trade negotiations. However, uncertainty now surrounds the planned meeting between Trump and Xi at a summit in South Korea later this month. Both sides are strengthening their positions, setting the stage for another potential showdown that could reshape global trade.
