China has accused the United States of applying double standards after Donald Trump threatened to impose a 100% tariff on Chinese goods. Beijing called the move “a typical example of unfair U.S. behavior” and warned of possible countermeasures if Washington follows through. A spokesperson for China’s commerce ministry said the country was “not afraid” of a trade war.
Trump escalates tensions with a new tariff threat
Trump reacted sharply to Beijing’s decision to tighten export rules for rare earth materials. He accused China of becoming “very hostile” and trying to hold the world “captive.” The former U.S. president even suggested cancelling a planned meeting with President Xi Jinping later this month. However, on Sunday he struck a softer tone. Trump wrote online: “Don’t worry about China, it will all be fine!” He added that Xi was “highly respected” and simply “had a bad moment.” Trump said both leaders wanted to avoid an economic depression and that the United States aimed to help, not harm, China.
Global markets tumble after Trump’s warning
Trump’s comments sent shockwaves through financial markets. On Friday, the S&P 500 index dropped 2.7%, marking its sharpest decline since April. In Asia, the effect was immediate. On Monday, the Shenzhen Component Index in mainland China fell more than 2.5%, while Hong Kong’s Hang Seng dropped around 3.5%. Investors feared a renewed trade war between the two largest economies.
Earlier trade truce under threat
In May, Washington and Beijing had agreed to remove triple-digit tariffs on each other’s goods. The decision had raised hopes of easing tensions. At that time, U.S. tariffs on Chinese goods carried an added 30% levy compared with the start of the year, while American products entering China faced a 10% tariff. The fragile truce now appears to be at risk after Trump’s latest remarks.
Beijing defends its export controls
China’s official response came through written answers from the commerce ministry. The statement repeated language used during earlier trade conflicts. It criticised U.S. restrictions on chip and semiconductor exports and defended China’s control over rare earth exports as “normal actions” to protect national security. The ministry accused the U.S. of stretching the concept of national security, abusing export controls, and adopting discriminatory measures. “Resorting to tariff threats is not the right way to engage with China,” the spokesperson said. “Our stance on a tariff war has always been clear: we do not want one, but we are not afraid of one.”
China tightens grip on rare earth exports
Last week, Beijing announced stricter export rules for rare earth materials and other vital resources used in advanced technology manufacturing. The move is significant, as China processes about 90% of the world’s rare earths. These materials are essential for producing smartphones, solar panels, and electric vehicles. Analysts view this step as both a show of strength and a signal ahead of future trade talks.
Uncertainty over Trump-Xi meeting
The latest exchange of words from Washington and Beijing is seen as a strategic effort to strengthen bargaining positions. It remains unclear whether the planned meeting between Trump and Xi at a summit in South Korea later this month will go ahead. Both sides appear to be preparing for tough negotiations that could reshape global trade once again.
