China has issued a sharp warning to the United States after President Donald Trump threatened to impose a new round of 100% tariffs, making clear that while it prefers diplomacy, it will not back down from a trade confrontation.
In a strongly worded statement, Ministry of Commerce of the People's Republic of China said its position remains &ldquo;clear and consistent.&rdquo; The ministry stressed that Beijing is not seeking a tariff war but is fully prepared to defend its interests. &ldquo;If the US side continues down this path, China will take firm countermeasures to safeguard its legitimate rights,&rdquo; the statement read.
The warning follows Trump&rsquo;s announcement that additional tariffs could be implemented by November 1, responding to China&rsquo;s fresh restrictions on the export of rare earth minerals. These strategic resources are vital for manufacturing electronics, renewable energy technology and military equipment.
China currently controls nearly 70% of rare earth mining and close to 90% of global processing. Under its new export rules, foreign firms must now secure special licenses to ship products containing even small amounts of Chinese-sourced rare earths. Washington has criticized the move as an attempt to use economic leverage, while Trump accused Beijing of &ldquo;holding the world hostage.&rdquo;
The escalating exchange has cast doubt on a possible meeting between Trump and Chinese President Xi Jinping and threatens to reignite a tariff war that previously saw duties from both nations soar above 100%.
In a retaliatory step, Beijing announced it will impose new port fees on American vessels from next week. The ministry clarified that licenses for rare earth exports will still be issued for legitimate civilian use, though the materials have significant military applications.
China also criticized recent US actions, including an expanded list of Chinese companies under export control and new port fees on Chinese ships, set to take effect Tuesday. Officials warned that if Washington continues to escalate, Beijing will match each move with &ldquo;resolute countermeasures.&rdquo;

US President Donald Trump and President of China Xi Jinping

Beijing urges talks but vows firm retaliation over new US tariffs and export dispute

China warns US: Ready for trade war if provoked

Beijing urges talks but vows firm retaliation over new US tariffs and export dispute

October 12, 2025 | 19:50 IST