China Vows to Stand Firm Against Trump's 100% Tariff Threat
BEIJING - China signaled on Sunday that it would not back down in the face of a 100% tariff threat from President Donald Trump, urging the U.S. to resolve differences through negotiations instead of threats.
According to a statement posted online by the Commerce Ministry, "China's stance is consistent. We do not want a tariff war but we are not afraid of one." This marked China's first official comment on Trump's threat to jack up the tax on imports from China by November 1 in response to new Chinese restrictions on the export of rare earths.
The rare earths, vital to a wide range of consumer and military products, have been at the center of a long-standing trade dispute between the two nations. The U.S. has accused China of using its dominance in the production of these minerals as leverage against American companies.
Trump's threat to impose a 100% tariff on Chinese imports was made in response to China's restrictions on the export of rare earths, which have been used in everything from smartphones and laptops to fighter jets and submarines.
The Commerce Ministry statement emphasized that China is willing to engage in negotiations with the U.S. but will not be intimidated by threats. "We believe that both sides should work together to resolve their differences through dialogue and consultation," said a spokesperson for the ministry.
This development comes as tensions between the two nations continue to escalate, threatening to derail a possible meeting between Trump and Chinese leader Xi Jinping. The meeting was seen as a potential step towards resolving the trade war, which has seen new tariffs from both sides briefly top 100% in April.
The implications of this standoff are far-reaching, with experts warning that a full-blown tariff war could have devastating consequences for global trade and economic growth.
"The U.S.-China trade relationship is a critical component of the global economy," said Dr. Susan Schadler, an economist at the Peterson Institute for International Economics. "A prolonged trade war would not only harm both countries but also have ripple effects on the rest of the world."
As the situation continues to unfold, markets are watching closely for any signs of movement from either side. The next developments will likely come in the form of a response from the U.S., which could include further tariffs or other measures aimed at pressuring China.
In the meantime, China's stance remains firm: "We are willing to work with the U.S. to resolve our differences through negotiations," said the Commerce Ministry spokesperson. "But we will not be intimidated by threats."
*Reporting by Npr.*
