Donald Trump's latest threat to impose an additional 100% tariff on Chinese goods is a typical example of US double standards, China's government has stated.
A Commerce Ministry spokesperson emphasized that China could introduce its own unspecified countermeasures if the US President follows through on his threat, declaring that China is not afraid of a possible trade war.
In a separate remark, Trump accused China of becoming very hostile and attempting to hold the world captive following Beijing's decision to tighten its rules on exports of rare earths. He also floated the idea of withdrawing from a planned meeting with China's President Xi Jinping later this month.
This rhetoric has sent ripples through financial markets, with the S&P 500 share index recording a 2.7% drop—the steepest fall since April. Trump's comments have reignited fears of an escalating trade conflict between the US and China.
Last May, both nations had agreed to reduce punitive tariffs on each other’s goods, which had raised concerns about potential halts in trade. Currently, US tariffs on Chinese goods include an additional 30% levy compared to the start of the year, while US products entering China face a 10% tariff.
China's remarks, released by its Commerce Ministry in response to journalists' questions, reflect a resurgence of language from the height of the trade conflict. They criticized US export restrictions on chips and semiconductors while defending its own controls on rare earths as normal actions for safeguarding national security.
The spokesperson elaborated, stating that the US has overstretched the concept of national security and has used discriminatory practices against China. Resorting to tariff threats is not the right way to engage with China, the spokesperson concluded, reaffirming that China does not seek a tariff war but is prepared for one if it arises.
Additionally, last week saw China tightening its export controls on rare earths—materials crucial for advanced technology manufacturing. As China processes approximately 90% of the world’s rare earths, this move has significant implications for global supply chains in sectors like solar panel and smartphone production.
As both Washington and Beijing continue exchanging harsh words, analysts interpret these developments as tactical positioning ahead of potential future trade negotiations. The fate of the Trump-Xi summit in South Korea remains uncertain at this juncture.
