President Donald Trump took steps on Sunday to ease concerns about a potential trade conflict with China after he threatened to impose a 100% tariff on imports from the country. This came in response to new Chinese export restrictions on rare earth minerals.
The proposed tariffs would be significantly higher than the existing average rate of around 55%.
In a post on Truth Social, Trump reassured that “everything is fine” regarding China’s economic situation, emphasizing a desire to assist rather than harm China. “Don’t worry about China, everything will be fine!” he stated. He credited Chinese President Xi Jinping for his leadership during tough times, referencing how neither country wants a downturn.
Hours later, China issued an official response to Trump’s tariff threat, warning the U.S. against relying on “threats” and vowing to take appropriate action should tariffs be implemented. The Chinese Commerce Department affirmed their position, stating they didn’t want a tariff war but were not afraid of one either. They urged the U.S. to resolve issues through dialogue instead.
This back-and-forth suggests a breakdown of the fragile trade truce between the two major economies. Trump’s warning was spurred by China’s new restrictions on exporting rare earths, crucial for advanced manufacturing and military tech, with China dominating roughly 70% of global rare earth mining and nearly 90% of processing.
Vice President JD Vance, appearing on Fox News, defended Trump’s strategy, labeling China’s control over essential supply chains a “national emergency.” He noted that the situation could evolve into a complex game of moves and countermoves, depending on China’s reactions.
Trump’s tariff threats and the subsequent Chinese response raise uncertainty regarding a prospective meeting with President Xi later in the year. China maintained its intention to grant licenses for legitimate civilian uses of rare earths but warned that it would take measures to protect its interests if the U.S. continued down this path.
Fox News Digital has reached out for additional comments from the White House regarding the situation.
