China has accused the United States of hypocrisy after Donald Trump threatened to impose a 100% tariff on Chinese imports. Beijing called the move “a prime example of double standards” and warned that it may take countermeasures if the U.S. proceeds. A commerce ministry spokesperson said China “seeks cooperation, not confrontation” but “will not retreat under pressure.”
Trump raises pressure with new tariff threat
Trump reacted strongly to Beijing’s decision to tighten export rules for rare earth materials. He accused China of acting “hostile” and trying to hold the world “captive.” The former U.S. president even threatened to cancel a planned meeting with President Xi Jinping later this month. But his tone softened days later. On Sunday, Trump posted online: “Don’t worry about China, it will all be fine!” He called Xi “highly respected” and said both countries wanted to avoid an economic downturn.
Global markets hit by renewed trade fears
Trump’s latest statements unsettled investors around the world. On Friday, the S&P 500 index dropped 2.7%, its steepest decline since April. Asian markets quickly followed. On Monday, the Shenzhen Component Index in China fell more than 2.5%, while Hong Kong’s Hang Seng lost around 3.5%. Traders worried that escalating rhetoric could trigger another round of tariffs and a new trade war.
Temporary trade truce under threat
In May, Washington and Beijing agreed to remove triple-digit tariffs on each other’s goods. The deal had briefly calmed markets and raised hopes of economic stability. At that point, U.S. tariffs on Chinese products were already 30% higher than at the start of the year, while China kept a 10% tariff on U.S. goods. Trump’s latest warning now puts that fragile truce in jeopardy.
Beijing rejects U.S. claims and defends its actions
China’s commerce ministry issued a detailed written response to journalists. It accused the U.S. of stretching the concept of national security and using export controls to suppress Chinese companies. Officials defended China’s own rare earth export restrictions as “normal steps” to protect global and domestic security. “Threats of tariffs are not dialogue,” the spokesperson said. “China will always stand firm when its interests are challenged.”
Rare earth exports take center stage
Beijing’s recent decision to tighten rare earth export controls highlights its dominance in a vital sector. China processes nearly 90% of the world’s rare earths, essential for manufacturing smartphones, solar panels, and electric vehicles. Analysts view the move as both a defensive step and a message to Washington that Beijing is ready to protect its technological influence.
Doubts grow over upcoming Trump-Xi talks
The escalating exchange between Washington and Beijing appears aimed at gaining leverage before the next round of negotiations. However, uncertainty surrounds whether Trump and Xi will meet as planned at a summit in South Korea later this month. Both sides now seem determined to harden their positions, setting the stage for another tense chapter in global trade relations.
