China vows retaliation if Trump enforces 100% tariffs

Beijing has signaled its firm stance against a potential 100% tariff threat from U.S. President Donald Trump, which he suggested could be implemented as a retaliatory measure against China’s recent restrictions on rare earth mineral exports. On October 12, 2025, the Chinese Commerce Ministry expressed that while it does not desire a tariff war, it is prepared to defend its 'legitimate rights and interests' should the U.S. continue unilateral actions that disrupt trade relations. This development adds to the mounting trade tensions that have stirred concerns among investors and industries globally. The backdrop of these tensions includes a series of measures taken by both nations; Trump’s administration has introduced a range of new restrictive policies targeting both Chinese goods and companies in recent weeks, which has led to a deterioration in the mood surrounding ongoing trade negotiations. China asserts that it is responding to America's aggressive trade policies by implementing its own restrictions on rare earth exports—a move seen as vital to both consumer electronics and military applications. This tit-for-tat situation has raised fears of an escalating trade conflict, reminiscent of previous instances where tariffs exceeded 100%. In this scenario, both sides have accused each other of undermining the spirit of their existing trade truce, with Trump claiming China's actions are hostile and detrimental to global access to essential materials. China, on the other hand, has characterized its export control measures as legitimate and necessary to counterbalance unilateral U.S. actions. The Chinese Ministry of Commerce has urged Washington to reconsider its tactics and engage in constructive dialogue rather than threats. The implications of this trade stand-off are significant, affecting global supply chains for essential technology and manufacturing sectors. Should these tariff threats materialize, industries relying on materials such as rare earth minerals, which China controls a significant portion of, may face disruptions that reverberate worldwide. Additionally, the ongoing negotiations between Trump and Chinese leader Xi Jinping, which were anticipated to occur shortly, now face uncertainty as both sides harden their positions. This situation necessitates urgent resolution to avert a full-scale trade war that could have far-reaching consequences on the global economy.