In a sharp escalation of the ongoing trade tensions between the United States and China, Beijing has called on U.S. President Donald Trump to retract his latest threat to impose a 100% tariff on all Chinese imports. This demand comes in response to Trump’s announcement over the weekend, which followed China’s decision to tighten restrictions on the export of rare earths, a critical resource for electronics manufacturing. The Chinese Ministry of Commerce described the U.S. actions as “severely damaging the atmosphere of trade negotiations.”
China’s move to restrict rare earths appeared to catch the Trump administration off guard, with the President labeling it an “out of the blue” decision. Despite the tariff threat, Trump struck a somewhat conciliatory tone in a Truth Social post on Sunday, stating, “The U.S.A. wants to help China, not hurt it!!!” However, China remained firm in its stance. On Monday, Chinese Ministry of Foreign Affairs spokesman Lin Jian urged the U.S. to “correct its erroneous practices” and warned that Beijing would take “resolute measures” to protect its interests if Washington persisted.
The trade war has seen both nations employing a range of retaliatory measures, including U.S. restrictions on China’s access to advanced computer chips and China’s halt on American soybean purchases. These actions, coupled with the imposition of tit-for-tat port fees, have created significant uncertainty in bilateral trade. Economic data released on Monday revealed that China’s exports to the U.S. have declined for six consecutive months, plummeting 27% in September compared to the previous year. This downturn underscores the growing economic strain caused by the prolonged trade conflict.