China Rejects Trump‘s Tariff Threat as Hypocritical,Defends Export Controls
China has criticized United States President Donald Trump’s recently announced 100 percent tariff on Chinese goods as hypocritical,while simultaneously defending its own restrictions on teh export of rare earth elements and related equipment. Beijing has, though, refrained from imposing retaliatory tariffs on US imports.
In a statement released Sunday, China’s Ministry of Commerce asserted that its export controls on rare earths – which President Trump characterized as “surprising” and “very antagonistic” – were a direct response to a series of prior actions taken by the US following trade discussions held in Madrid, Spain, last month.
The ministry stated, “China’s stance is consistent. We do not want a tariff war but we are not afraid of one.”
President trump announced the tariff, effective November 1, on Friday as a countermeasure to China’s curbs on rare earth exports, alongside new export controls on critical software.
Beijing cited Washington’s blacklisting of Chinese firms and the imposition of port fees on China-linked ships as examples of “provocative and damaging” actions, labeling Trump’s tariff threat a presentation of “double standards.” The ministry emphasized that these actions “have severely harmed China’s interests and undermined the atmosphere for bilateral economic and trade talks.”
Notably, China has not yet announced any reciprocal tariffs in response to the US measures, diverging from previous rounds of trade tensions.
Rare earth elements are central to the ongoing trade dispute, being essential components in the manufacturing of a wide range of products, including smartphones, electric vehicles, military hardware, and renewable energy technologies. China currently dominates the global production and processing of these materials. Last Thursday, China announced new controls on the export of technologies used in the mining and processing of critical minerals.
The escalating tensions also cast a shadow over a potential summit between President Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month, which would be their first face-to-face meeting since Trump’s return to office in January.
The dispute has triggered volatility in global markets, impacting major tech stocks and raising concerns for companies reliant on China’s dominance in rare earth processing.
meanwhile, Taiwan’s economy ministry indicated on Sunday that China’s latest export restrictions on rare earth elements are unlikely to substantially affect its semiconductor industry. The ministry explained that the restricted rare earth elements differ from those used in Taiwan’s semiconductor manufacturing processes, and that Taiwan primarily sources these materials from europe, the united States, and japan.
