Politics

China Fires Back: How Beijing’s Warning Signals a New Trade War Phase Against President Trump

China warned the U.S. of countermeasures if Trump imposes new tariffs amid trade tensions and rare earth controls.

October 12, 2025, 9:50 AM

Close-up, head-and-shoulders portrait of Chinese President Xi Jinping wearing a dark suit and blue patterned tie.

A portrait of Chinese President Xi Jinping shows him during his state visit to France in 2018, captured outside the formal setting of the Élysée Palace. By Frederic Legrand - COMEO / Shutterstock.com.

Executive Summary

Beijing has warned of imposing countermeasures if President Trump proceeds with his threat to implement new 100% tariffs on Chinese goods.

The escalating rhetoric follows China’s recent restrictions on rare earth mineral exports, which are critical for global industries.

China defends its export controls as legitimate, accusing the United States of “double standards” and “abusing export controls” against Chinese entities.

The Story So Far

The current escalation in trade tensions between the US and China stems from President Trump’s threat to impose new 100% tariffs on Chinese goods. This threat was a direct response to China’s recent decision to restrict rare earth mineral exports, which are critical components for various global industries. Beijing views these US actions, including expanded export controls and other restrictive measures introduced despite recent negotiations, as unilateral and discriminatory, further jeopardizing efforts to resolve trade disputes.

Why This Matters

The escalating trade rhetoric between the US and China, marked by President Trump’s threat of 100% tariffs and Beijing’s promise of countermeasures, signals a significant jeopardization of ongoing trade negotiations. This tit-for-tat, especially following China’s rare earth export restrictions, could lead to substantial disruptions in global markets and critical supply chains, particularly for industries reliant on these essential minerals.

Who Thinks What?

China’s Ministry of Commerce believes that President Trump’s threats of high tariffs are unilateral and the wrong way to engage, asserting that while China does not seek a tariff war, it is not afraid of one and will take corresponding measures to safeguard its legitimate rights and interests. They also defend their rare earth export controls as a “legitimate move,” accusing the United States of “double standards” and abusing export controls.

President Donald Trump threatens to implement new 100% tariffs on Chinese goods, which emerged in response to China’s decision to unleash export restrictions on rare earth minerals.

Beijing has warned of imposing countermeasures against the United States if President Donald Trump proceeds with his threat to implement new 100% tariffs on Chinese goods. The escalating rhetoric follows China’s recent restrictions on rare earth mineral exports, threatening to undermine months of delicate trade negotiations between the two economic powers.

Escalating Trade Standoff

In Beijing’s first official comments on Trump’s threat, a spokesperson for China’s Ministry of Commerce stated on Sunday that “resorting to threats of high tariffs is not the right way to engage with China.” The spokesperson emphasized that while China does not seek a tariff war, it “is not afraid of one.”

The Ministry asserted that if the United States “persists in acting unilaterally,” China would “resolutely take corresponding measures to safeguard its legitimate rights and interests.” This declaration signals a firm stance against what Beijing views as aggressive trade tactics.

President Trump’s tariff threat emerged in response to China’s decision last week to unleash a raft of export restrictions on rare earth minerals, critical components for numerous global industries.

Rare Earths and Economic Implications

Rare earth minerals are indispensable for global industries and technology supply chains, playing a vital role in the production of electronics, semiconductors, automobiles, and defense technologies, including fighter jets. China’s new export controls are expected to significantly increase pressure on these sectors worldwide.

The commerce ministry spokesperson defended the export controls as a “legitimate move,” accusing Washington of “double standards” regarding trade and national security. Beijing argued that the United States has “overstretched the concept of national security and abused export controls,” implementing discriminatory measures against China.

China pointed out that Washington has imposed unilateral “long-arm jurisdiction” restrictions on a wide array of products, including semiconductor equipment and chips. The US export control list reportedly covers over 3,000 items, significantly more than China’s list of just over 900.

Recent US Actions and Diplomatic Efforts

Beijing attributed the latest escalation in trade tensions to the Trump administration, citing a series of new restrictive measures introduced just 20 days after the most recent round of trade talks in Madrid in early September. These measures reportedly included adding multiple Chinese entities to the US export control list, expanding controls to cover listed companies’ subsidiaries, and implementing special port fees for Chinese ships.

China urged the United States to “promptly correct its wrong approach” and to “preserve the hard-won progress in negotiation,” referencing an important consensus reached between Chinese leader Xi Jinping and Trump. The current standoff risks derailing ongoing efforts to de-escalate trade disputes.

The exchange of threats highlights persistent tensions between the world’s two largest economies, with both sides indicating a readiness to escalate trade measures in defense of their perceived national interests, potentially impacting global markets and supply chains.