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Home > World > China Vows To Stand Firm Against Trump’s 100% Tariff Threat: ‘We Don’t Want A Tariff War But…’

China Vows To Stand Firm Against Trump’s 100% Tariff Threat: ‘We Don’t Want A Tariff War But…’

The latest dispute centres on rare earth minerals, a group of 17 elements critical for the production of electronics, batteries, and military equipment.

Published By: Shivam Verma
Published: October 12, 2025 11:55:37 IST

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Tensions between China and the United States have flared up again after President Donald Trump threatened to impose a new round of 100% tariffs on Chinese imports. Beijing responded sharply, warning Washington that it prefers dialogue over confrontation but will not hesitate to defend its interests if pushed too far.

“China’s stance is consistent. We do not want a tariff war, but we are not afraid of one,” the Chinese Commerce Ministry said in a statement posted online. It added that if the US “obstinately insists on its practice,” China will “resolutely take corresponding measures to safeguard its legitimate rights and interests.”

The latest dispute centres on rare earth minerals, a group of 17 elements critical for the production of electronics, batteries, and military equipment. China controls nearly 70% of the world’s mining and about 90% of its processing capacity.

Recently, Beijing introduced new export rules requiring foreign companies to obtain special licenses for goods containing even small amounts of Chinese-sourced rare earths. The Trump administration views this move as a strategic threat, accusing China of “holding the world hostage.”

Trump’s tariff warning was seen as a direct response to these restrictions. The US president said the new measures could take effect by November 1 unless China eases its curbs.

The escalating war of words now threatens to derail a potential meeting between Trump and Chinese President Xi Jinping, which was expected to help stabilise relations. Both countries had previously paused their tariff battle after months of economic strain.

In a tit-for-tat move, China announced that it would impose similar port fees on American ships starting next week. Beijing also criticised Washington for expanding export controls on Chinese firms and for introducing new port fees on Chinese vessels, effective Tuesday.

ALSO READ: Trump Announces 100% Tariffs On China In Retaliation For Beijing’s Export Restrictions

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