BEIJING — China signaled Sunday that it would not back down in the face of a 100% tariff threat from President Donald Trump, urging the U.S. to resolve differences through negotiations instead of threats. U.S. Vice President JD Vance defended Trump’s position and seemed to warn China not to be aggressive in its response.
“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.
The back and forth threatens to derail a possible meeting between Trump and Chinese leader Xi Jinping and end a truce in a trade war in which new tariffs from both sides briefly topped 100% in April.
In response, Vance said Sunday that Trump is committed to protecting America’s economic livelihoods while making the United States 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.
The statement called for addressing any concerns through dialogue.
“If the U.S. side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests,” the post said.
In addition to the 100% tariff, Trump threatened to impose export controls on what he called “critical software,” without specifying what that means.
Both sides accuse the other of violating the spirit of the truce by imposing new restrictions on trade.
Trump said in a social media post that China is “becoming very hostile” and that it is holding the world captive by restricting access to rare earth metals and magnets.
The Chinese Commerce Ministry post said the U.S. has introduced several new restrictions in recent weeks, including expanding the number of Chinese companies subject to U.S. export controls.
On rare earths, the ministry said that export licenses would be granted for legitimate civilian uses, noting that the minerals also have military applications.
The new regulations include a requirement that foreign companies get Chinese government approval to export items that contain rare earths sourced from China, no matter where the products are manufactured.
China accounts for nearly 70% of the world’s rare earths mining and controls roughly 90% of their global processing. Access to the material is a key point of contention in trade talks between Washington and Beijing.
The critical minerals go into many products, from jet engines, radar systems and electric vehicles to consumer electronics including laptops and phones. China’s export controls have hit European and other manufacturers, as well as American ones.
The Commerce Ministry statement said that the U.S. is also ignoring Chinese concerns by going forward with new port fees on Chinese ships that take effect Tuesday. China announced Friday that it would impose port fees on American ships in response.
