BEIJING— China has vehemently denounced the latest aggressive trade move by the United States, accusing Washington of “arbitrary double standards” after President Donald Trump threatened to impose a devastating 100% tariff on all Chinese imports.
In a sharp retort issued by the Ministry of Commerce on Sunday, Beijing rejected the new levy—which would be added on top of existing duties—and warned that it is “not afraid to fight” a trade war, even as it called for negotiations.
The escalation plunges relations between the world’s two largest economies into their deepest crisis in months, raising alarm bells across global financial markets.
Rare Earths and Retaliation
The diplomatic firestorm was ignited by the strategic resource of rare earth elements. Beijing recently announced sweeping new export control measures on the critical minerals—vital to the manufacturing of everything from high-tech chips and electric vehicles to sophisticated military hardware.
President Trump retaliated on Friday, declaring on social media that China’s move was an “extraordinarily aggressive” and “very hostile” attempt to “hold the World ‘captive’.” He announced a 100% tariff on Chinese goods, set to take effect on November 1, along with new export controls on “critical software.”
China’s Ministry of Commerce spokesperson slammed the response as a clear-cut case of hypocrisy.
“The relevant US statement is a typical example of ‘double standards,'” the ministry said, defending its rare earth controls as “normal actions taken by the Chinese government” to safeguard national security.
The ministry argued that the U.S. has a long history of “overstretching the concept of national security” to restrict Chinese companies, pointing to Washington’s continuous blacklisting of firms and expanding export controls.
‘We are not afraid to fight’
China’s statement was clear-eyed and defiant, signaling an end to the temporary truce that followed months of earlier trade negotiations.
“China’s position on the trade war is consistent: we do not want it, but we are not afraid of it,” the spokesperson stressed, urging the U.S. to “promptly correct its erroneous practices” and seek resolution through dialogue on the basis of “mutual respect.”
The ministry also accused the U.S. of actively undermining the atmosphere for trade talks by introducing a string of new restrictions since their last high-level meeting.
Should Washington proceed with the extraordinary new tariffs, Beijing vowed to “resolutely take corresponding measures to safeguard its legitimate rights and interests.” These countermeasures have already begun, with China announcing special port fees on U.S. ships, mirroring a similar fee recently imposed by the Trump administration.
The renewed escalation has jeopardized a potential meeting between President Trump and Chinese President Xi Jinping, a highly anticipated encounter that many analysts viewed as the only path toward stabilizing the rapidly deteriorating relationship. As the deadline for the tariffs looms, businesses and investors worldwide are bracing for another brutal round of trade conflict.