President Trump sought to ease fears of a worsening trade conflict with Beijing on Sunday, hours after threatening 100% tariffs on all Chinese imports in retaliation for China’s new export restrictions on rare earth minerals. The proposed duties would mark a sharp jump from the current average 55% tariff rate.
Posting on Truth Social, Trump struck a conciliatory tone, saying China’s economy “will be fine” and that the US wants to “help China, not hurt it.” He added that President Xi Jinping had “a bad moment” and that both countries wish to avoid economic pain.
Beijing swiftly responded, warning Washington against using “threats” and vowing to “take corresponding measures” if the US proceeds. China’s Commerce Ministry said it does not seek a tariff war but “is not afraid of one,” urging dialogue instead.
The exchange follows Beijing’s fresh curbs on rare earth exports, minerals critical to advanced manufacturing and military technology, a move that triggered Trump’s latest tariff threat. China controls roughly 70% of global rare earth mining and nearly 90% of processing capacity.
US Vice President JD Vance defended Trump’s approach, calling China’s dominance in supply chains “a national emergency.” Speaking on Fox News, Vance warned that any aggressive Chinese response would be met with stronger US action, insisting that “the President has far more cards than China.”
China’s Commerce Ministry maintained that it would keep issuing export licenses for legitimate civilian use but warned it would act to safeguard national interests if the US “obstinately insists” on new tariffs.
The escalating rhetoric has cast uncertainty over a potential meeting between Trump and Xi later this year.
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As it happened:
From Friday ICYMI:
From late Friday:
China responds over the weekend:
Some TACO moves already, some murmurings of Trump already backing off. BRB with more on this:
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