🔗 Share this article

The former US president’s latest ultimatum to impose an extra 100% tariff on products from China has been labeled a “typical example” of United States’ contradictory behavior, per the Chinese government.

A official from China’s Commerce Ministry further commented that the nation could introduce its own undisclosed “retaliatory steps” if the American leader executes his pledge, adding that the country was “unafraid” of a looming trade war.

Last Friday, Trump responded at China’s decision to strengthen its regulations for exports of rare earths, accusing China of “adopting a confrontational stance” and attempting to hold the global community “under its control”.

Furthermore, he vowed to cancel a planned meeting with Chinese leader Xi Jinping, which was expected to take place during a summit in South Korea before the month ends.

The former president’s remarks on Friday unsettled financial markets, with the S&P 500 falling by 2.7%, marking its largest decline since earlier this year.

The president’s words revived concerns of a trade conflict between the United States and China.

In May, the respective governments had agreed to eliminate significant levies on each other’s products, which had created the possibility of bilateral trade stopping between the economic powers.

As a result, US tariffs on Chinese imports subject to an extra import tax compared with the beginning of 2025, while items from the United States entering the Chinese market incur a 10% tariff.

The most recent comments from China – released by the Commerce Ministry in the form of formal replies to media inquiries – reflected language from the zenith of the latest commercial tensions.

They criticised American limits on exports on semiconductors and chips while defending China’s own restrictions on exports on key elements as “normal actions” to safeguard state interests and that of all nations.

The spokesperson said that for “a long time”, the US had “expanded the interpretation” of domestic safety, abused foreign shipment regulations and “adopted discriminatory practices against Beijing.

“Turning to” trade levy ultimatums is not the right way to deal with the Chinese government,” their representative commented.

“Beijing’s stance” on a tariff war has always been unchanging: we do not want one, but we are unafraid of one.”

The previous week, the Chinese government announced it was tightening foreign shipment restrictions on rare earths and further resources essential to high-technology production.

The action was viewed as a key move, as the state refines about 90% of the global rare earth supply, which are used in products such as renewable energy components and mobile phones.

New remarks from both governments are being seen by observers as a strategy of enhancing bargaining power prior to forthcoming discussions.

Remains uncertain whether a summit between Trump and Xi Jinping, scheduled at a high-level meeting in South Korea before month’s end, will go ahead.