China has accused the United States of triggering a fresh trade conflict after Donald Trump threatened a 100% tariff on Chinese goods. Beijing described the move as “a clear example of double standards” and warned it could respond with countermeasures if Washington acts. A spokesperson for China’s commerce ministry said the country “does not seek a trade war but will defend its interests firmly.”
Trump escalates tensions with new tariff threat
Trump reacted 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. On 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 countries wanted to prevent an economic downturn.
Global markets tumble on renewed trade fears
Trump’s remarks rattled markets worldwide. On Friday, the S&P 500 index fell 2.7%, its steepest decline since April. Asian markets followed the trend. On Monday, China’s Shenzhen Component Index dropped more than 2.5%, while Hong Kong’s Hang Seng declined about 3.5%. Investors feared that a renewed trade conflict could disrupt global supply chains and slow economic growth.
Fragile trade truce faces renewed threat
In May, Washington and Beijing agreed to suspend triple-digit tariffs on each other’s goods, providing a brief respite. 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.
Beijing defends export measures
China’s commerce ministry issued a 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 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 key leverage point
Beijing’s tighter control over rare earth exports highlights its dominance in a crucial global industry. China processes nearly 90% of the world’s rare earths, vital for smartphones, electric vehicles, and solar panels. Analysts said the move demonstrates China’s economic leverage and its readiness to protect strategic sectors.
Trump-Xi summit uncertain amid escalating tensions
The growing tensions between Washington and Beijing appear 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 seem prepared for tough negotiations that could once again reshape global trade relations.
