China slams Trump’s 100 percent tariff threat, defends rare earth curbs | Trade War News

China Fires Back at Trump’s 100% Tariff Threat, Stands Firm on Rare Earth Export Controls | Trade War Update


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Beijing remains steadfast against intimidation, urging the United States to settle disagreements through diplomatic dialogue.

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China has criticized the United States, led by President Donald Trump, for what it calls a double standard after the US imposed new tariffs on Chinese products. While defending its restrictions on the export of rare earth minerals and related technologies, China has refrained from retaliating with additional tariffs on American goods.

In an extensive announcement released Sunday, China’s Ministry of Commerce explained that the export limitations on rare earth elements-deemed “unexpected” and “hostile” by Trump-were implemented as a direct response to a series of US actions following their recent trade discussions in Madrid.

The ministry emphasized, “China’s position remains unwavering. We do not seek a trade war, but we are prepared to face one if necessary.”

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In retaliation to China’s export restrictions, Trump declared on Friday a 100% tariff on Chinese imports to the US, alongside new controls on the export of vital software, set to take effect November 1.

Beijing pointed to Washington’s blacklisting of Chinese companies and the imposition of port fees on vessels linked to China as provocative measures that damage bilateral relations, labeling Trump’s tariff announcement as a clear example of hypocrisy.

“These steps have significantly harmed China’s interests and disrupted the environment for constructive economic and trade negotiations. China strongly condemns these actions,” the ministry stated.

Unlike previous cycles of reciprocal tariffs, China has yet to unveil any countermeasures in response.

Rare earth minerals have become a critical point of contention in ongoing trade talks between the two nations. These elements are essential for producing a wide array of products, from electric vehicles and smartphones to defense systems and clean energy technologies.

China holds a dominant position in the global supply and refinement of these materials. Recently, it introduced new regulations controlling the export of technologies related to the extraction and processing of key minerals.

The escalating trade friction threatens to jeopardize a potential meeting between President Trump and Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea, which would mark their first in-person discussion since Trump’s return to office in January.

This dispute has also unsettled international markets, causing declines in major technology stocks and raising concerns among companies dependent on China’s rare earth processing capabilities.


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