China issued a blunt warning to Washington after President Donald Trump threatened a new round of 100% tariffs, stating that it prefers diplomacy over confrontation but will not hesitate to retaliate if provoked.
“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war, but we are not afraid of one.”
“If the US side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests,” the post added.
The ministry emphasised the need for dialogue, but also made clear that Beijing would not be scared of a trade war and would resort to “resolute countermeasures” to defend its economic interests if tensions escalate.
The response came two days after Trump threatened to jack up the tax on imports from China by November 1 in response to new Chinese restrictions on the export of rare earths, a key ingredient for many consumer and military products.
This time, rare earths are at the centre of the dispute. China dominates the global supply chain, accounting for nearly 70% of mining and an overwhelming 90% of the processing of these strategic minerals.
China’s new export rules require foreign companies to obtain special licenses to ship goods containing even small amounts of Chinese-sourced rare earths, a move that the Trump administration sees as an economic weapon.
Trump responded by accusing Beijing of “holding the world hostage,” and hinted that China’s tightening grip on rare earth exports poses a threat not just to American manufacturers, but to global security.
This back-and-forth threatens to derail a possible meeting between Trump and Chinese leader Xi Jinping and end a truce in a tariff war, in which new tariffs from both sides briefly topped 100 per cent before both sides stepped back from the brink.
China’s response
In a tit-for-tat move, China announced on Friday that it would slap similar port fees on U.S. vessels beginning next week.
The ministry post said that export licenses would be granted for legitimate civilian uses, noting that the minerals also have military applications.
The Chinese Commerce Ministry post said that the US has introduced several new restrictions in recent weeks, including expanding the number of Chinese companies subject to US export controls.
It also stated that the US is ignoring Chinese concerns by proceeding with new port fees on Chinese ships, which take effect on Tuesday. China announced that it would impose port fees on American ships in response