China Signals Defiance Against Trump’s Threat of 100 Per Cent Tariffs

Beijing: China made it clear on Sunday that it would not yield to threats of a 100 per cent tariff from President Donald Trump, urging Washington to settle disagreements through discussion rather than intimidation.

“China’s position remains steady,” the Commerce Ministry stated online. “We do not seek a tariff war, yet we are not intimidated by one.”

The remarks followed Trump’s warning on Friday that tariffs on Chinese imports could rise dramatically by November 1, in response to Beijing’s new restrictions on the export of rare earths. These minerals are crucial components in a wide array of consumer goods and military equipment.

The exchange threatens to jeopardise a potential meeting between Trump and Chinese President Xi Jinping, and could unravel the fragile truce in a trade dispute that briefly saw tariffs from both nations surpass 100 per cent in April.

This year, Trump has imposed higher import taxes on several of America’s trading partners, aiming to extract concessions in return. China, relying on the weight of its economy, has remained one of the few countries to resist.

“Repeatedly resorting to threats of steep tariffs is not the proper way to interact with China,” the Commerce Ministry added in an online post. The statement, formatted as responses from an unnamed spokesperson to unspecified media questions, urged that any issues be settled through dialogue.

The post warned: “If the US continues its current approach, China will take necessary measures to protect its legitimate rights and interests.” Both nations accuse each other of breaking the spirit of the truce by imposing fresh trade restrictions.

Trump has described China as “becoming very hostile,” criticising restrictions on rare earth metals and magnets, which he claims are being used to limit global access.

Beijing’s new regulations demand foreign companies obtain special approval to export even minimal quantities of products containing Chinese rare earths. These elements are indispensable in everything from jet engines, radar systems and electric vehicles to laptops and smartphones.

China controls nearly 70 per cent of the world’s rare earths mining and approximately 90 per cent of global processing. The supply of these materials has become a central sticking point in trade talks between Washington and Beijing.

The Commerce Ministry indicated that licences would be granted for civilian purposes, though the minerals also have military applications. The statement highlighted recent US restrictions, including the expansion of Chinese companies under American export controls, and noted Washington’s plans to implement new port fees on Chinese vessels. Beijing responded by announcing port fees for American ships, effective Tuesday.