China has accused the United States of applying “double standards” after Donald Trump threatened to impose a 100% tariff on Chinese goods. Beijing called the threat “a clear example of American hypocrisy” and warned that it may launch countermeasures if Washington acts. A commerce ministry spokesperson said China “does not want a trade war, but will not fear one.”
Trump reignites the tariff confrontation
Trump reacted angrily after Beijing tightened export rules on rare earth materials. He accused China of turning “hostile” and trying to keep the world “captive.” The former U.S. president also hinted at cancelling his planned meeting with President Xi Jinping later this month. But two days later, his tone softened. On Sunday, Trump wrote online: “Don’t worry about China, it will all be fine!” He praised Xi as a “highly respected leader” and said both countries wanted to avoid an economic crisis.
Stock markets plunge after Trump’s remarks
Financial markets fell sharply following Trump’s warning. On Friday, the S&P 500 index slid 2.7%, marking its steepest drop since April. Asian markets followed the downward trend. On Monday, the Shenzhen Component Index dropped over 2.5%, while Hong Kong’s Hang Seng Index fell around 3.5%. Investors feared that a renewed trade war between Washington and Beijing could hit global growth.
Fragile trade truce now in danger
Just months ago, both nations had agreed to suspend triple-digit tariffs on each other’s products. The decision had raised hopes of a more stable trade relationship. At that time, U.S. tariffs on Chinese goods were up 30% since January, while Chinese tariffs on American imports stood at 10%. Trump’s new threat now risks dismantling that fragile truce and reigniting economic tensions.
China defends its export restrictions
In a written response, China’s commerce ministry accused the U.S. of abusing export controls and discriminating against Chinese companies. Officials defended the country’s rare earth export rules as “legitimate and necessary” to protect national security. “Threatening tariffs is not the right way to talk to China,” the spokesperson said. “Our stance is consistent — we prefer cooperation, but we will fight back if forced.”
Rare earths become a strategic weapon
Beijing recently introduced tougher export limits on rare earths and other vital resources for high-tech production. The move matters because China processes about 90% of global rare earths, which are crucial for smartphones, electric cars, and solar panels. Analysts see this step as both a defensive measure and a signal of China’s readiness to protect its strategic interests.
Future Trump-Xi meeting uncertain
The escalating rhetoric from Washington and Beijing appears to be part of a strategic power play before renewed talks. However, uncertainty looms over the planned meeting between Trump and Xi at a summit in South Korea later this month. Both sides seem to be bracing for difficult negotiations that could again reshape global trade relations.
