China has accused the United States of escalating a global trade conflict after Donald Trump threatened a 100% tariff on Chinese goods. Beijing called the move “a blatant example of double standards” and warned it could respond with countermeasures. A spokesperson for China’s commerce ministry said the country “does not seek a trade war but will firmly defend its interests.”
Trump intensifies pressure on Beijing with new tariff threat
Trump reacted after China tightened export rules for rare earth materials crucial to advanced technologies. He accused Beijing of acting “hostile” and attempting 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. 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 amid trade fears
Trump’s remarks rattled markets worldwide. On Friday, the S&P 500 index dropped 2.7%, its steepest fall since April. Asian markets followed suit. On Monday, the Shenzhen Component Index fell more than 2.5%, while Hong Kong’s Hang Seng declined around 3.5%. Investors worried that renewed trade tensions could disrupt supply chains and slow global growth.
Fragile trade truce now at 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 latest threats now endanger that fragile truce, raising fears of another escalation in the trade dispute.
Beijing defends its export controls
China’s commerce ministry issued a statement accusing the U.S. of abusing export controls and unfairly targeting Chinese firms. Officials defended China’s rare earth export rules as “necessary measures” to protect national and global security. “Threats and tariffs are not a solution,” the spokesperson said. “China seeks dialogue but will respond firmly if provoked.”
Rare earths become strategic leverage
Beijing’s tighter control over rare earth exports highlights its dominance in a critical global industry. China produces nearly 90% of the world’s rare earths, essential for smartphones, electric vehicles, and solar panels. Analysts say the move signals China’s economic leverage and its readiness to protect strategic sectors.
Trump-Xi summit uncertain amid rising tension
The escalating rhetoric between Washington and Beijing appears aimed at strengthening negotiating positions before 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 appear prepared for tough negotiations that could once again reshape global trade relations.
