The Chinese government has asserted its intention to retaliate if President Trump doesn’t backtrack on his proposed 100% tariffs on Chinese imports, a move prompted by China’s recent restrictions on rare earth exports.
On Friday, Trump took to Truth Social to express his concerns about China’s plan to implement export controls related to rare earths. Later, he declared his intention to impose these tariffs starting on November 1st.
China’s Ministry of Commerce responded critically, emphasizing that such tariffs could escalate into a trade war, and they promised to enact countermeasures if necessary.
“Threatening high tariffs isn’t the right approach to foster good relations with China,” a representative from the Ministry stated. “We are consistent in not wanting a trade war, but we won’t shy away from fighting if pushed.”
The spokesperson warned, “Should the U.S. continue down this misguided path, China will take decisive actions to safeguard its rights and interests.”
Additionally, the Chinese government dismissed Trump’s criticisms over the export restrictions as a “classic case of double standards,” citing the restrictions placed on high-end semiconductors by the Trump administration as a similar example.
This decision to double the limits on rare earth minerals—essential for various U.S. industries, including defense and electric vehicles—highlights China’s leverage over critical mineral supply chains.
“Recently, the U.S. has imposed a series of restrictions that have harmed China’s interests and disrupted the atmosphere for economic talks between our nations,” added the spokesperson.
As a result of the escalating situation, the S&P 500 saw a decline of over 2% on Friday, marking its most significant drop since April.
Despite these tensions, Trump reassured his followers via Truth Social that everything would be fine, attributing the strain to what he deemed a “bad moment” for Chinese President Xi Jinping.
“There’s no need to worry about China, we’ll be okay! President Xi is just having a rough time. I don’t want to induce panic, nor does he. The U.S. aims to assist China, not harm it,” Trump stated.
