China has accused the United States of fueling another trade crisis after Donald Trump threatened a 100% tariff on Chinese imports. Beijing described the move as “a clear example of double standards” and warned it could retaliate if Washington acts. A commerce ministry spokesperson said China “does not seek a trade war but will defend its interests firmly.”
Trump escalates pressure on Beijing with tariff threat
Trump reacted after China tightened export rules for rare earth materials crucial to high-tech industries. He accused Beijing of being “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. By Sunday, he softened his tone. Trump posted online: “Don’t worry about China, it will all be fine!” He praised Xi as “highly respected” and said both nations wanted to prevent an economic downturn.
Global markets tumble on trade worries
Trump’s statements immediately unsettled global markets. On Friday, the S&P 500 index fell 2.7%, its steepest decline since April. Asian markets mirrored the fall. On Monday, China’s Shenzhen Component Index lost more than 2.5%, while Hong Kong’s Hang Seng declined around 3.5%. Investors feared renewed trade tensions could disrupt global supply chains and slow economic growth.
Fragile trade truce faces renewed risk
In May, Washington and Beijing agreed to suspend triple-digit tariffs on each other’s goods, temporarily easing tensions. At the 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 and raise fears of another escalation in the trade dispute.
China defends export policies
China’s commerce ministry issued a written statement accusing the U.S. of abusing export controls and targeting Chinese companies unfairly. Officials defended China’s rare earth export restrictions as “necessary measures” to safeguard national and global security. “Tariff threats will not resolve disputes,” the spokesperson said. “China seeks dialogue but will respond firmly if provoked.”
Rare earths become a strategic lever
Beijing’s tighter control over rare earth exports highlights its dominance in a key global sector. China processes nearly 90% of the world’s rare earths, vital for smartphones, solar panels, and electric vehicles. Analysts view the move as both a defensive measure and a signal of China’s economic leverage.
Trump-Xi summit uncertain amid tensions
The rising tension between Washington and Beijing appears aimed at strengthening negotiating positions ahead of future trade talks. However, uncertainty now surrounds the planned meeting between Trump and Xi at a summit in South Korea later this month. Both leaders appear ready for tough negotiations that could once again reshape global trade dynamics.
