World

China stands firm on rare earths as Trump threatens 100% tariffs

Beijing urges dialogue over confrontation as tensions rise ahead of potential Trump-Xi meeting

Updated 11 months ago · Published on 13 Oct 2025 10:17AM

China stands firm on rare earths as Trump threatens 100% tariffs
Washington signals readiness but warns of firm retaliation if provoked - October 13, 2025

CHINA has issued a sharp response to former U.S. President Donald Trump’s renewed tariff threats, vowing it would not capitulate to pressure and instead calling for disputes to be resolved through negotiation, not provocation.

“China’s stance is consistent. We do not want a tariff war but we are not afraid of one,” AP cite the Commerce Ministry saying in a statement posted online on Sunday, marking its first official comment following Trump’s threat to impose 100% tariffs on all Chinese imports from 1 November.

The threats follow Beijing’s move to tighten export controls on rare earths, minerals crucial to a wide array of high-tech and military applications. China currently produces nearly 70% of the world’s rare earths and processes close to 90%, making it an indispensable player in global supply chains.

The ministry’s statement, presented as answers from an unnamed spokesperson, stressed that the United States should “address concerns through dialogue” and warned that if Washington “obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests.”

Hours later, Trump adopted a softer tone, posting on his Truth Social platform, “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 U.S.A. wants to help China, not hurt it!!!”

Despite the conciliatory language, Trump did not walk back the threatened tariffs or the suggestion of possible export controls on what he termed “critical software”, though he gave no further details. The timing of his comments appeared aimed at easing investor nerves after the S&P 500 fell 2.7% on Friday — its worst day in six months.

Vice President JD Vance, appearing on Fox News, reinforced the administration’s hard line, calling China’s dominance in key supply chains “a national emergency”.

“It’s going to be a delicate dance,” said Vance. “If they respond in a highly aggressive manner, I guarantee you the president of the United States has far more cards than the People’s Republic of China.”

However, he added that Trump remained open to negotiation: “Donald Trump is always willing to be a reasonable negotiator. We’re going to find out in the weeks to come whether China wants to start a trade war or actually be reasonable.”

The flare-up in tensions has cast uncertainty over the prospect of a future Trump-Xi meeting and threatens to upend the fragile truce struck earlier in the year. Both sides have accused the other of violating the agreement by implementing new restrictions — Beijing on rare earth exports and Washington on export controls and port fees.

The Chinese Commerce Ministry said it would still grant export licences for rare earths used in legitimate civilian applications, though it emphasised the materials’ strategic importance, particularly in military technology.

New regulations now also require foreign firms to seek Chinese government approval before exporting any items that contain Chinese-sourced rare earths, regardless of where the products are manufactured.

China has also retaliated against new US port charges set to take effect on Tuesday by announcing similar fees for American ships.

As economic and political stakes rise, both nations are navigating a high-risk standoff that could reverberate through global trade and markets in the coming weeks. - October 13, 2025

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