Get all your news in one place.
100’s of premium titles.
One app.
Start reading
International Business Times
International Business Times
Business

Trump Calms Trade War Fears After China Vows Retaliation to 100% Tariff Threat

In this file photo taken on June 28, 2019, China's President Xi Jinping (R) shakes hands with US President Donald Trump before a bilateral meeting on the sidelines of the G20 Summit in Osaka. -

President Donald Trump sought to ease worries of a deepening trade war with China on Sunday, following his threat to impose a 100% tariff on Chinese imports.

The tariff threat came in response to China's recent export restrictions on rare earth minerals—key ingredients in many high-tech and military products.

According to USA Today, in a message posted on his social media platform Truth Social, Trump reassured the public, saying, "Don't worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn't want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!"

China quickly responded to Trump's threat with a firm statement from its Commerce Ministry.

The ministry said it "does not want a tariff war, but we are not afraid of one," and warned the US against using threats.

It also pledged to take "corresponding measures" if the US goes ahead with the tariff increase.

This exchange marks a tense moment between the world's two largest economies.

Trump's move was triggered by China limiting exports of rare earths, minerals essential for advanced manufacturing and defense technologies.

Trump-China Meeting Doubtful Over Rare Earth Dispute

China dominates this market, controlling about 70% of mining and 90% of processing worldwide, FoxBusiness reported.

Vice President J.D. Vance supported Trump's position on Fox News, calling China's control over rare earths "the definition of a national emergency."

He added, "It's going to be a delicate dance and a lot of it depends on how the Chinese respond. If they respond aggressively, I guarantee the President has more cards than China."

The dispute has raised doubts about a planned meeting between Trump and Chinese President Xi Jinping later this year.

China emphasized it will continue to grant export licenses for rare earths used in civilian goods but warned it will protect its interests if the US insists on imposing tariffs.

Beijing also criticized US trade policies, citing sanctions against Chinese companies and port fees on Chinese ships as reasons behind its export controls.

China's ministry called these actions harmful to bilateral trade talks and accused the US of undermining cooperation.

While China stopped short of retaliating with tariffs, it signaled readiness to act if necessary.

Analysts suggest this stance may leave room for negotiation, though some see it as a sign China may no longer prioritize a trade deal with the current US administration.

Originally published on vcpost.com

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.