“We are not afraid” of a tariff war, says China, in response to Trump’s threat

The company signaled this Sunday, the 12th, that it will not back down in the face of President Donald Trump’s threat to impose a 100% tariff on the country and asked the United States to resolve differences through negotiations, not threats.

“China’s position is consistent,” the Ministry of Commerce said in a statement. “We don’t want a tariff war, but we’re not afraid of one.”

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It was China’s first official comment on Trump’s threat to raise taxes on Chinese imports by November 1 in response to new restrictions imposed by Beijing on the export of rare earths, which are vital for a wide range of consumer and military products.

The exchange of accusations threatens to disrupt a possible meeting between Trump and Chinese leader Xi Jinping and end the truce in a trade war that, in April, saw tariffs above 100% on both sides.

Since taking office in January, Trump has raised taxes on imports from many US trading partners, seeking to win concessions. China has been one of the few countries that have not backed down, relying on its economic influence.

“Frequently resorting to the threat of high tariffs is not the right way to engage with China,” the Ministry of Commerce said in its post, which was presented as a series of responses from an unidentified spokesperson to four questions from media outlets. The statement called for any concerns to be addressed through dialogue.

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“If the American side stubbornly insists on its practice, China will certainly take corresponding measures to safeguard its legitimate rights and interests,” the publication said.

In addition to the 100% tariff, Trump threatened to impose export controls on what he called “critical software,” without specifying what that meant. Both sides accuse the other of violating the spirit of the truce by imposing new trade restrictions. Trump said in a social media post that China was “becoming very hostile” and was holding the world hostage by restricting access to rare earth metals and magnets.

The Chinese Ministry of Commerce said the US has introduced several new restrictions in recent weeks, including expanding the number of Chinese companies subject to US export controls. Regarding rare earths, the ministry said that export licenses would be granted for legitimate civilian uses, highlighting that the minerals also have military applications. The new rules include a requirement that foreign companies obtain approval from the Chinese government to export items containing rare earths originating in China, regardless of where the products are manufactured.

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China accounts for about 70% of the world’s rare earth mining and controls about 90% of its global processing. Access to the material is one of the main points of dispute in trade negotiations between Washington and Beijing. Critical minerals are present in a variety of products, from jet engines, radar systems and electric vehicles to consumer electronics such as laptops and phones. Chinese export restrictions have affected European, American and other manufacturers.

The Commerce Ministry statement said the US is also ignoring Chinese concerns by moving forward with new port fees for Chinese ships, which take effect on Tuesday. In response, China announced on Friday that it would impose port fees on American ships.