Trump Seeks to Calm Trade War Fears After 100% Tariff Threat
Former President Donald Trump has attempted to ease concerns about an escalating trade war with China, despite threatening to impose 100% tariffs on Chinese imports. The threat came in response to Beijing’s restrictions on rare earth mineral exports.
Key Developments
- Trump threatens 100% tariffs on Chinese imports, up from current 55% average
- China warns it will “resolutely take corresponding measures” if US proceeds
- Rare earth export restrictions triggered the latest trade tensions
- VP Vance calls China’s supply chain dominance “national emergency”
In a Truth Social post, Trump insisted China’s economic situation would “all be fine” and stated the U.S. “wants to help China, not hurt it.” He wrote: “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.”
China’s Firm Response
China’s Commerce Ministry responded hours later, warning Washington against “threats” and pledging countermeasures if the U.S. moves forward with the tariffs planned for November 1.
“China’s stance is consistent,” the ministry stated. “We do not want a tariff war, but we are not afraid of one.” Officials urged the U.S. to resolve differences “through dialogue,” calling tariff threats “not the correct way to get along with China.”
Rare Earths: The Core Issue
The confrontation marks a significant shift in the trade truce between the world’s two largest economies. Trump’s tariff threat was triggered by China’s new restrictions on rare earth mineral exports – materials crucial for advanced manufacturing and military technology.
China currently controls approximately 70% of global rare earth mining and nearly 90% of processing capacity, giving it significant leverage in global supply chains.
Vance Backs Trump’s Stance
Vice President JD Vance defended the administration’s position during a Fox News appearance, describing Beijing’s dominance in key supply chains as “the definition of a national emergency.”
“It’s going to be a delicate dance and a lot of it is going to depend on how the Chinese respond,” Vance told “Sunday Morning Futures.” “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.”
Meeting in Doubt
The escalating tensions have cast doubt on a potential meeting between Trump and Xi Jinping later this year. While China’s Commerce Ministry said it would continue granting export licenses for legitimate civilian rare earth uses, it warned that continued U.S. pressure would prompt Beijing to protect its interests.
