Tensions between the US and China have escalated. China announced it will retaliate if US President Donald Trump implements his threat of a 100% tariff on Chinese imports. Beijing said it does not seek a trade war but is not afraid of one.

China: We Will Retaliate

The Chinese Ministry of Foreign Affairs announced that if US President Donald Trump's threat of a “100 percent additional tariff” on Chinese products becomes a reality, it will implement countermeasures against the Washington administration.

A spokesperson for China’s Ministry of Commerce issued the first official response on the matter, saying, “Resorting to threats of high tariffs in relations with China is not the right approach.” The spokesperson added, “If the US continues to act unilaterally, China will resolutely take countermeasures to protect its legitimate rights and interests. Our stance on a trade war is clear: we do not seek one, but we are not afraid of it.”

Rare Earth Elements and Export Controls

China emphasized the critical role of rare earth elements and production technologies in both civilian and military applications. Beijing stressed that the measures it has taken are not an outright “export ban” but rather “export controls,” and guaranteed that civilian use requests will continue to be supported and expedited.

US Response

U.S. President Trump announced that China had sent letters outlining plans to restrict all stages of rare earth element production and exports to other countries. In response, he stated that the US would impose a 100% tariff on all Chinese goods starting November 1, or earlier depending on China's actions. Additional export controls will also be applied to all critical software.

APEC Summit and Global Impact

The latest measures coincide with ongoing US-China trade negotiations. Both countries’ leaders are expected to meet at the APEC Summit in South Korea later this month. The escalation affects global supply chains and the technology sector. China produces the majority of the world’s rare earth elements. US tariffs and export controls could have serious consequences for international markets and industries.