BEIJING — China signaled on Sunday that it would not back down in the face of a 100% tariff threat from President Donald Trump and urged the United States to resolve differences through negotiations instead of threats. Trump responded by taking a less confrontational approach without retreating from his demands, while his vice president seemed to warn Beijing not to react aggressively.
“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”
It was China’s first official comment on Trump’s threat to jack up the tax on imports from China by Nov. 1 in response to new Chinese restrictions on the export of rare earths, which are vital to a wide range of consumer and military products.
Hours later, Trump used his Truth Social platform to send a message to Chinese leader Xi Jinping.
“Don’t worry about China, it will all be fine!” the Republican president wrote. “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!!!”
Trump may have had an eye toward to U.S. financial markets on the eve of the new business week. The stock market will be open Monday, though bond markets will close for the Columbus Day holiday. On Friday, the broad S&P 500 stock market index plunged 2.7%, its worst day in about six months after Trump’s tariff threat.
The back and forth threatens to derail a possible meeting between Trump and Xi and end a truce in a trade war in which new tariffs from both sides briefly topped 100% in April.
Vice President JD Vance said Trump was committed to protecting America’s economic livelihoods while making the U.S. more self-sufficient. He said the fact that China has “so much control over critical supply in the United States of America” is the definition of a national emergency and therefore justifies Trump’s move to impose tough tariffs.
“It’s going to be delicate dance and a lot of it is going to depend on how the Chinese respond. 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,” Vance said on Fox News Channel’s “Sunday Morning Futures.”
“If, however, they’re willing to be reasonable, then Donald Trump is always willing to be a reasonable negotiator. We’re going to find out a lot in the weeks to come about whether China wants to start a trade war with us or whether they actually want to be reasonable,” Vance continued. “I hope they choose the path of reason. The president of the United States is going to defend America regardless.”
Trump has raised taxes on imports from many U.S. trading partners since taking office in January, seeking to win concessions. China has been one of the few countries that hasn’t backed down, relying on its economic clout.
“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the Commerce Ministry said in its post, which was presented as a series of answers from an unnamed spokesperson to four questions from unspecified media outlets.
