China has rejected the US’s latest tariff threats, urging Washington to seek a negotiated settlement instead of escalating tensions. The warning came in an official statement released by China’s Ministry of Commerce on Sunday, in response to US President Donald Trump’s plan to impose a 100% tariff on Chinese imports.
The US move is reportedly in retaliation for Beijing’s new restrictions on rare earth exports, which are vital materials used in products ranging from smartphones to fighter jets. China’s Ministry of Commerce stated that “China’s position on the trade war is consistent: we do not want it, but we are not afraid of it.” The ministry also emphasized that “willful threats of high tariffs are not the right way to get along with China,” and warned that if the US insists on going the wrong way, China will take resolute measures to protect its legitimate rights and interests.
The renewed friction between the two countries threatens to derail a possible meeting between Trump and Chinese President Xi Jinping, scheduled to take place on the sidelines of the APEC summit in South Korea in late October or early November. The meeting had been viewed as an opportunity to revive dialogue between the world’s two largest economies.
Both countries have accused each other of breaching the trade ceasefire by introducing new restrictions. Trump has accused China of “becoming very hostile” and “holding the world captive” by limiting access to rare earths. Beijing’s new export rules require foreign companies to obtain special approval before exporting goods containing even minimal amounts of Chinese-sourced rare earth elements.
In August, the US and China agreed to prolong a tariff truce after a trade war in which both sides imposed ever-increasing duties. Under the 90-day extension, US tariffs on Chinese imports were reduced from 145% to 30%, while China’s tariffs on American products dropped from 125% to 10%. The extension is set to expire in November, and the latest developments have raised concerns about the future of trade relations between the two countries.
China’s refusal to yield to US pressure reflects its reliance on economic leverage to counter US tariffs. The country has made it clear that it will not bend to Washington’s demands, and will instead take measures to protect its own interests. As the trade tensions between the US and China continue to escalate, the international community is watching closely to see how the situation will unfold.