China has accused the United States of provoking another trade crisis after Donald Trump threatened to impose a 100% tariff on Chinese imports. Beijing described the move as “a blatant example of double standards” and warned it could retaliate if Washington proceeds. A commerce ministry spokesperson said China “does not want a trade war but will never back down from one.”
Trump escalates tension with new tariff threat
Trump reacted sharply after China tightened export rules for rare earth materials essential to advanced industries. He accused Beijing of being “hostile” and trying to hold the world “captive.” The former U.S. president also hinted 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 called Xi “highly respected” and said both countries wanted to avoid an economic downturn.
Global markets fall amid trade fears
Trump’s remarks rattled financial markets worldwide. On Friday, the S&P 500 index fell 2.7%, its steepest drop since April. Asian markets followed. On Monday, China’s Shenzhen Component Index dropped over 2.5%, while Hong Kong’s Hang Seng fell around 3.5%. Investors feared that a renewed trade conflict could disrupt supply chains and slow global 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 that 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 concerns of a fresh escalation.
Beijing defends its export restrictions
China’s commerce ministry issued a written statement accusing the U.S. of abusing export controls and discriminating against Chinese firms. Officials defended China’s rare earth export rules as “necessary measures” to protect national and global security. “Tariff threats are not a solution,” the spokesperson said. “China seeks dialogue but will respond firmly if provoked.”
Rare earths emerge as strategic leverage
Beijing’s tighter controls on rare earth exports underscore its dominance in a critical global industry. China processes nearly 90% of the world’s rare earth elements, essential for smartphones, electric vehicles, and solar panels. Analysts said the move signals China’s economic leverage and its readiness to protect key industries.
Trump-Xi summit uncertain amid rising tensions
The escalating rhetoric between Washington and Beijing appears aimed at strengthening positions before future trade talks. However, it remains unclear whether Trump and Xi will meet as planned at a summit in South Korea later this month. Both sides are preparing for tough negotiations that could once again reshape global trade relations.
