China Stands Firm Against U.S. 100% Tariff Threat, Calls for Negotiations

Beijing signals readiness to respond to trade escalation as tensions over rare earth exports intensify

Beijing, October 12, 2025 — China has reaffirmed its resolute stance in the face of U.S. President Donald Trump’s threat to impose 100% tariffs on Chinese imports, urging Washington to resolve differences through dialogue rather than coercion.

In an online statement, the Chinese Commerce Ministry said, “We do not want a tariff war, but we are not afraid of one,” emphasizing that China’s position remains consistent amid growing trade tensions.

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Background: Rare Earths Trigger Tensions

The latest dispute follows Trump’s warning to raise taxes on Chinese imports by November 1, in response to China’s new restrictions on rare earth exports—minerals essential for everything from jet engines and radar systems to electric vehicles and consumer electronics.

China currently accounts for nearly 70% of global rare earth mining and controls about 90% of processing, giving it significant leverage in international supply chains. Its new regulations require foreign companies to obtain special approvals before exporting products containing even traces of Chinese-sourced rare earths, which have both civilian and military applications.

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Escalation and Retaliation Risks

The ongoing standoff threatens to derail planned meetings between Trump and Chinese President Xi Jinping, potentially ending a fragile truce in the U.S.-China tariff war. In April, tariffs on certain products from both sides had briefly exceeded 100%, highlighting the high stakes of renewed escalation.

Trump has accused China of holding the world captive by limiting access to rare earth metals, calling Beijing “very hostile.” Meanwhile, China has pointed to recent U.S. restrictions, including expanding export controls and introducing new port fees on Chinese ships, which Beijing views as provocations. In response, China announced reciprocal port fees on American vessels.

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China Calls for Dialogue

The Commerce Ministry reiterated that dialogue remains the preferred path, warning that if the U.S. insists on aggressive measures, China will take necessary steps to protect its legitimate interests. The ministry stressed that export licenses would still be granted for legitimate civilian purposes, attempting to separate commercial use from sensitive military applications.

The statement concluded that frequent threats of high tariffs are not a constructive method for managing the U.S.-China relationship, and both sides must work to maintain stability in global trade.