China signaled Sunday that it would not back down in the face of a 100 percent tariff threat from President Donald Trump, urging the U.S. to resolve the matter through negotiations instead of threats.
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Why It Matters
Earlier this week, China’s Ministry of Commerce announced new rules that would require foreign firms to obtain special approval before exporting products that contain even trace amounts of rare earth elements sourced from China. Those minerals are crucial inputs for a wide array of technologies—from jet engines, radar systems and electric vehicles to everyday consumer electronics such as laptops and phones.
China accounts for nearly 70 percent of global rare earths mining and controls roughly 90 percent of the world’s processing capacity. That concentration of supply has made access to these materials a central point of leverage in ongoing U.S.-China trade talks.
What To Know
Writing on Truth Social, Trump said: “Based on the fact that China has taken this unprecedented position, and speaking only for the USA, and not other nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a tariff of 100% on China, over and above any tariff that they are currently paying.
China made clear that it will not be cowed by Trump’s threat to impose 100 percent tariffs on Chinese imports.
“If the U.S. persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests,” a commerce ministry spokesperson added. “Our position on a tariff war remains consistent—we do not want one, but we are not afraid of one.”
It comes before a potential meeting between Trump and Chinese leader Xi Jinping and endangers a fragile pause in a tariff fight that briefly saw combined duty hikes exceed 100 percent in April.
“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” a spokesperson for China said. “If the U.S. side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests.”
What People Are Saying
Writing on Truth Social, President Donald Trump said on Saturday: “One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America. There are many other countermeasures that are, likewise, under serious consideration.”
What Happens Next
Trump has said he still expects to attend the meeting with Xi, hosted in South Korea, at the end of this month.
This article contains reporting from The Associated Press.
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