Beijing has stated that it will respond if former President Donald Trump proceeds with his plan to impose a 100% tariff on Chinese imports. This comes after Trump announced that additional tariffs would be applied to China’s exports to the U.S. along with new controls on crucial software starting November 1. China’s commerce ministry has attributed the increased trade tensions to Washington’s actions, emphasizing that such threats are not conducive to a collaborative relationship.
A spokesman for the ministry noted that, while China does not seek a trade war, it is prepared to take necessary actions to safeguard its rights if the U.S. continues down this path. On the same day, Trump and U.S. administration officials suggested the possibility of a trade agreement with China as U.S. stock market futures indicated further declines.
In a post on Truth Social, Trump expressed confidence in the Chinese economy, stating that President Xi does not desire a downturn for his nation and that the U.S. aims to help, not hinder, China. This statement followed comments from JD Vance, a U.S. senator, urging Beijing to adopt a more reasonable approach amid rising trade tensions.
The U.S. stock market reacted sharply, with a significant drop observed, reflecting concerns over a renewed trade conflict. The Dow Jones Industrial Average fell over 879 points, mainly due to fears stemming from Trump’s tariff threat, which coincided with China’s new restrictions on rare earth exports, materials critical to several U.S. industries.
China defended its recent export controls, asserting that they did not constitute a ban and that compliant applications for civil use would still receive approvals. The tensions have been exacerbated by additional U.S. measures that have placed several Chinese companies on an export control list aimed at technology and goods seen as sensitive. Investors are now questioning the validity of Trump’s tariff threat and whether it might escalate or lead to an agreement between the two countries.
Source: https://www.theguardian.com/us-news/2025/oct/12/china-warns-us-of-retaliation-over-trump-100-tariffs-threat