China has accused the United States of fueling a new economic confrontation after Donald Trump threatened to impose a 100% tariff on Chinese goods. Beijing denounced the move as “a clear case of double standards” and warned it could introduce countermeasures. A spokesperson for China’s commerce ministry said the country “will never seek a trade war but will never fear one.”
Trump sparks new tariff storm against China
Trump lashed out after Beijing tightened export rules for rare earth materials vital to global industries. He accused China of becoming “very hostile” and trying 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. Days later, however, he shifted tone. On Sunday, Trump wrote online: “Don’t worry about China, it will all be fine!” He praised Xi as “highly respected” and said both countries wanted to prevent an economic downturn.
Markets tumble amid renewed trade war fears
Trump’s words quickly rattled global markets. On Friday, the S&P 500 index fell 2.7%, its sharpest drop since April. The impact spread across Asia, where the Shenzhen Component Index sank more than 2.5% and Hong Kong’s Hang Seng plunged around 3.5%. Investors grew nervous about a possible return of a full-scale trade war between the world’s two biggest economies.
Trade truce on the verge of collapse
Just months ago, Washington and Beijing agreed to suspend triple-digit tariffs on each other’s goods, offering a glimpse of calm. At that point, U.S. tariffs on Chinese imports had risen by 30% since January, while China imposed a 10% levy on American products. Trump’s renewed threats now risk tearing that fragile truce apart.
Beijing defends its export controls and strikes back
In a written statement, China’s commerce ministry condemned Washington’s actions as discriminatory and politically motivated. Officials accused the United States of abusing export control measures and stretching the definition of national security. They defended China’s export limits on rare earths as “reasonable steps to protect global security.” “Threats will not solve anything,” the spokesperson said. “China stands firm — we prefer cooperation, but we will never bow to pressure.”
Rare earths take center stage in trade dispute
Beijing’s tightening of rare earth exports underscores its dominance in a critical industry. China processes nearly 90% of the world’s rare earth elements, essential for technologies like smartphones, electric cars, and renewable energy systems. Experts view this move as both a protective measure and a calculated reminder of Beijing’s leverage in global manufacturing.
Trump-Xi meeting uncertain as tensions escalate
The escalating rhetoric from both sides appears aimed at strengthening negotiating positions before renewed trade talks. Yet uncertainty now surrounds the expected meeting between Trump and Xi at a summit in South Korea later this month. As both leaders dig in, global observers fear the dispute could escalate into another round of economic turbulence with worldwide consequences.
