Beijing has issued a defiant response to Washington’s latest tariff threat, signaling that China is prepared to retaliate if the United States proceeds with new trade measures. In a statement published Sunday, the Chinese Commerce Ministry urged dialogue over confrontation but made clear that Beijing will not yield under pressure.
“China’s position is consistent. We do not seek a tariff war, but we are not afraid of one,” the ministry said, responding to U.S. President Donald Trump’s plan to impose a 100% tariff on Chinese imports beginning November 1. The announcement follows a week of escalating tensions after China introduced sweeping export controls on rare-earth materials, critical components in advanced electronics, defense systems, and semiconductor manufacturing.
The ministry criticized Washington’s strategy of “frequently resorting to the threat of high tariffs,” warning that such tactics “are not the correct way to engage with China.” The statement, presented as remarks from an unnamed spokesperson, stressed that if the U.S. continues on its current path, Beijing “will take firm and necessary measures to safeguard its legitimate rights and interests.”
The exchange threatens to derail months of fragile progress toward a potential meeting between President Trump and President Xi Jinping, raising fears of a renewed tariff confrontation between the world’s two largest economies.
Analysts note that both sides appear to be hardening their positions. The U.S. move follows its tightening of export restrictions on chip design software, while China’s rare-earth restrictions mark a direct challenge to America’s industrial supply chain. With the prospect of a new round of tit-for-tat trade measures, global markets are bracing for another wave of volatility in what increasingly looks like a full-scale economic showdown between Washington and Beijing.