China Warns of Retaliation Following Trump's Tariff Threats

Tue Oct 21 2025 19:54:03 GMT+0300 (Eastern European Summer Time)

China's government responds to US President Donald Trump's latest threats of tariffs, emphasizing potential countermeasures and condemning perceived double standards in trade practices.

In a recent development, the Chinese government has accused the United States of double standards in trade practices following President Trump's threat to impose a 100% tariff on Chinese goods. Chinese officials stated they could introduce countermeasures in response and are prepared for potential trade conflicts. This back-and-forth arises amid tensions over China's tightened export regulations on rare earths, a critical component in technology production, with both countries bracing for potential escalation ahead of a scheduled summit between Trump and Xi Jinping.

Donald Trump's latest threat to impose an additional 100% tariff on Chinese goods is a typical example of US double standards, China's government has said.

A Commerce Ministry spokesperson also said China could introduce its own unspecified countermeasures if the US President carries out his threat, adding it was not afraid of a possible trade war.

On Friday, Trump hit back at Beijing's move to tighten its rules for exports of rare earths, accusing China of becoming very hostile and trying to hold the world captive.

He also threatened to pull out of a meeting with China's President Xi Jinping scheduled for later this month.

Trump's comments rattled financial markets, with the S&P 500 share index closing down 2.7%, its steepest fall since April. The president's words renewed fears of a trade war between the US and China.

In May, the two sides had agreed to drop triple-digit tariffs on each others' goods. This left US tariffs on Chinese goods facing an added 30% levy compared with the start of the year, while US goods entering China face a 10% tariff.

China's latest remarks echoed language from the height of the recent trade conflict, criticizing US export restrictions on chips and semi-conductors while defending China's own export controls on rare earths as normal actions to safeguard national security.

The spokesperson stated that for a long time, the US had overstretched the concept of national security, abused export control measures and adopted discriminatory practices against China.

They emphasized that resorting to tariff threats is not the right way to engage with China, asserting that China does not seek a tariff war but is prepared for one.

Last week, China announced it was tightening export controls on rare earths, materials critical for advanced tech manufacturing. This move was significant as the country processes about 90% of the world's rare earths, essential for products like solar panels and smartphones.

The recent comments from Washington and Beijing are perceived by some as a means of strengthening positions ahead of future trade talks. The status of the anticipated meeting between Trump and Xi Jinping remains unclear amidst these rising tensions.