China said Sunday it would not back down in the face of a 100% tariff threat from Trump.
“The US should resolve differences through negotiations, not threats,” the Commerce Ministry said in an online statement.
“China’s stance is consistent. We do not want a tariff war but we are not afraid of one,” the statement said.
Trump warned Friday that he could sharply raise tariffs on Chinese imports in response to Beijing’s new restrictions on rare earth exports — minerals vital to consumer electronics and military technology.
The exchange risks undermining plans for a meeting between Trump and Chinese President Xi Jinping and could end a fragile truce in the ongoing tariff dispute, during which levies briefly exceeded 100% in April.
Trump has raised import taxes on several US trading partners this year, seeking concessions in return for tariff relief.
China, relying on its economic strength, has resisted backing down.
“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the ministry said in a Q&A post from an unnamed spokesperson.
It added that issues should be addressed “through dialogue.”
“If the US side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests,” the post said.
Both countries accuse each other of violating the spirit of the tariff truce through new trade restrictions.
Trump said China is “becoming very hostile” and is “holding the world captive” by limiting access to rare earth metals and magnets.
China’s new rules require foreign firms to obtain special approval to export products containing even small amounts of rare earths sourced from China.
These minerals are essential for jet engines, radar systems, electric vehicles, and consumer electronics such as laptops and phones.
China produces nearly 70% of the world’s rare earths and processes about 90% of global output — a major leverage point in its trade negotiations with Washington.
The Commerce Ministry said export licenses would be granted for legitimate civilian use, noting the minerals’ military importance.
It also accused the US of adding new trade barriers, including expanding export controls on Chinese firms and introducing new port fees on Chinese ships effective Tuesday.
Beijing said Friday it would impose similar port fees on American vessels in response.