China has accused the United States of sparking new trade tensions after Donald Trump threatened to impose a 100% tariff on Chinese goods. Beijing described the move as “a blatant example of double standards” and warned it could retaliate if Washington acts. A spokesperson for China’s commerce ministry said the country “does not seek a trade war but will firmly defend its interests.”
Trump intensifies tariff threats against Beijing
Trump responded after China tightened export rules for rare earth materials essential to advanced industries. He accused Beijing of acting “hostile” and attempting to hold the world “captive.” The former U.S. president also suggested he might cancel a planned meeting with President Xi Jinping later this month. By Sunday, he softened his tone, posting online: “Don’t worry about China, it will all be fine!” He described Xi as “highly respected” and said both nations wanted to prevent an economic downturn.
Global markets react to renewed trade fears
Trump’s statements immediately unsettled global markets. On Friday, the S&P 500 index fell 2.7%, its sharpest drop since April. Asian markets mirrored the decline. On Monday, China’s Shenzhen Component Index fell more than 2.5%, while Hong Kong’s Hang Seng dropped around 3.5%. Investors feared that renewed trade tensions could disrupt global supply chains and slow economic growth.
Fragile trade agreement faces pressure
In May, Washington and Beijing agreed to suspend triple-digit tariffs on each other’s goods, briefly easing tensions. At that time, U.S. tariffs on Chinese imports had risen 30%, while China imposed a 10% levy on American products. Trump’s renewed threats now endanger that fragile truce, raising concerns of another escalation in the trade dispute.
China defends export controls
China’s commerce ministry issued a written statement accusing the U.S. of abusing export controls and unfairly targeting Chinese firms. Officials defended China’s rare earth export restrictions as “necessary measures” to protect national and global security. “Tariff threats will not resolve disputes,” the spokesperson said. “China seeks dialogue but will respond firmly if provoked.”
Rare earths emerge as a strategic tool
Beijing’s tighter control over rare earth exports highlights its dominance in a crucial global sector. China processes nearly 90% of the world’s rare earths, vital for smartphones, solar panels, and electric vehicles. Analysts said the move signals China’s economic leverage and its readiness to protect key industries.
Trump-Xi summit remains uncertain
The rising tensions between Washington and Beijing appear aimed at strengthening negotiating positions ahead of future trade talks. However, uncertainty now hangs over the planned meeting between Trump and Xi at a summit in South Korea later this month. Both leaders appear prepared for tough negotiations that could once again reshape global trade relations.
