China Hits Back at Trump’s Tariffs, Warns It’s “Not Afraid of a Trade War”

​Beijing Pushes Back
China has fired back at the United States after President Donald Trump slapped 100% tariffs on Chinese imports, accusing Washington of “double standards” and defending its new export restrictions on rare earth minerals as a legitimate national measure.

A spokesperson from China’s Ministry of Commerce said Sunday that while the country doesn’t seek a trade conflict, it is prepared for one if necessary. “We do not want a trade war,” the statement read, “but we are not afraid of it.”

The Spark: Rare Earths and Retaliation
The dispute began when Beijing tightened export controls on rare earth materials, a vital component in electronics, EVs, and defense systems. The new rules require foreign companies to apply for licenses to export goods containing even tiny amounts of Chinese-sourced rare earths.

The U.S. called the move economic coercion, while China insisted it was simply enforcing fair trade laws. “These controls are consistent with international law,” the Commerce Ministry said, adding that the goal is to “strengthen export oversight and protect global stability.”

Trump Escalates With New Tariffs
President Trump responded swiftly, announcing on social media that all Chinese imports would face new 100% tariffs starting November 1 — “over and above any tariff they are currently paying.” The statement triggered a market rout, wiping $2 trillion off U.S. equities in a single day.

Trump also hinted at new export limits on “critical software”, arguing that Beijing’s dominance in rare earths made the global economy “hostage” to China.

Tensions Ripple Through Global Supply Chains
The U.S. and China account for the vast majority of the world’s rare earth production and demand — making the stakes high. China controls around 70% of global supply, while American tech and defense sectors rely heavily on the materials.

The European Chamber of Commerce in China reported growing delays for export license approvals, calling the new rules a “major disruption to global supply chains.”

China’s Response: “Passive Defense”
In a statement Monday, Beijing described its actions as “necessary passive defense”, arguing that Washington’s tariff barrage had “seriously undermined the atmosphere for trade negotiations.”

Talks between U.S. and Chinese officials have been ongoing in Geneva, London, and Stockholm throughout the year, producing limited progress. While a potential meeting between Trump and President Xi Jinping was planned for later this month, Trump has now threatened to cancel it following Beijing’s latest export tightening.

The Bigger Picture
Both nations are digging in — and the timing couldn’t be more sensitive. With the global economy still fragile and inflation pressures mounting, another escalation risks reviving a full-blown trade war reminiscent of 2018.

​For now, Beijing’s message is clear: it’s done playing defense. “Willful threats of high tariffs are not the right way to get along with China,” the Commerce Ministry said. “We will act when necessary.”