China has accused the United States of reigniting economic tensions after Donald Trump threatened to impose a 100% tariff on Chinese goods. Beijing called the plan “a blatant act of double standards” and warned it may introduce countermeasures if Washington follows through. A spokesperson for China’s commerce ministry said the country “will not provoke a trade war but will never retreat from one.”
Trump reignites tariff conflict with Beijing
Trump’s anger flared after China tightened export controls on rare earth materials crucial to modern technologies. He accused Beijing of becoming “hostile” and trying to hold the world “captive.” The former U.S. president also hinted he might cancel a planned meeting with President Xi Jinping later this month. But his tone softened days later. On Sunday, Trump wrote online: “Don’t worry about China, it will all be fine!” He called Xi “highly respected” and said both leaders wanted to avoid a global economic slump.
Global markets reel after Trump’s remarks
Financial markets reacted sharply to the renewed tension. On Friday, the S&P 500 index fell 2.7%, its steepest decline since April. Asian markets soon followed. On Monday, China’s Shenzhen Component Index dropped more than 2.5%, while Hong Kong’s Hang Seng lost about 3.5%. Investors feared another tariff war could once again unsettle global trade and growth.
Fragile trade agreement on the edge
In May, Washington and Beijing had agreed to suspend triple-digit tariffs on each other’s exports. That truce briefly raised hopes of stability. At that time, U.S. tariffs on Chinese goods had increased by 30%, while China imposed a 10% levy on American products. Trump’s latest threats now endanger that fragile peace.
Beijing condemns U.S. actions and defends its policies
In a written statement, China’s commerce ministry accused the United States of abusing export controls and discriminating against Chinese firms. Officials defended the country’s rare earth export restrictions as “normal actions” to safeguard national and international security. “Tariffs are not a negotiation tool,” the spokesperson said. “China’s attitude remains firm — we want dialogue, but we will respond if provoked.”
Rare earths become the new battleground
Beijing’s decision to tighten export limits on rare earths highlights its dominance in the sector. China processes nearly 90% of the world’s rare earths, essential for smartphones, solar panels, and electric vehicles. Analysts see the move as both a defensive measure and a strategic warning to Washington ahead of future trade talks.
Trump-Xi meeting in doubt as tensions grow
The latest exchange between Washington and Beijing appears to be part of a calculated effort to gain leverage before new negotiations. However, it remains uncertain whether Trump and Xi will meet as planned at a summit in South Korea later this month. Both sides are preparing for tough talks that could once again redefine global trade relations.
