China Threatens Retaliation Following Trump’s Decision to Impose 100 Percent Tariff

China's Ministry of Commerce stated that these US actions would harm bilateral trade talks, but Beijing "is not afraid to fight." This announcement comes in response to China's recent export restrictions on rare earth minerals, which are crucial for electronics, battery, and high-tech industries.

US President Donald Trump has announced a major decision to impose a 100 percent tariff on all goods imported from China. This move will take effect from November 1, 2025, and will be in addition to current tariff rates. Along with Trump's announcement, strict export controls will also be imposed on critical American software. In response, China has strongly condemned this as an 'arbitrary double standard' and issued a stern warning of retaliatory action.

The Chinese Ministry of Commerce stated that these actions by the US would harm bilateral trade talks, but Beijing is 'not afraid to fight'. This announcement comes in response to China's recent export restrictions on rare earth minerals, which are crucial for the electronics, battery, and high-tech industries. Currently, Chinese imports face an average tariff of 30-55%, but the new 100% tariff will push this to 130-155%, which would be practically equivalent to a complete trade ban.

On Sunday, the Chinese Ministry of Commerce strongly criticised the move, stating, "This severely harms China's interests and undermines efforts to maintain stable economic and trade relations. The US has continuously imposed new sanctions even after the recent trade talks in Madrid, blacklisting many Chinese companies. Threatening high tariffs at every step is not the right way to negotiate." The ministry emphasised, "China does not want to fight, but it is not afraid to fight either. We will take retaliatory action if necessary."

China has also announced the imposition of special port fees on ships connected to the US, describing it as a 'necessary defensive measure' against the new tariffs. The ministry warned, "If the US persists in its stance, China will take all necessary steps to protect its legitimate rights." A resident of Beijing said, "China is no longer afraid of American sanctions. Our economy has become strong." However, some analysts believe that while China's pain threshold is high, the risk of a global recession may increase.

It is noteworthy that Trump posted on his social media platform Truth Social late on Friday night, stating, "China has adopted an extraordinarily aggressive stance in trade. They have sent a hostile letter to the world, talking about imposing massive export controls on almost every product from November 1, 2025. This is a moral disgrace. Therefore, the US will impose a 100% tariff on China from November 1 (or earlier depending on China's further actions), which will be higher than the current tariffs." Trump also questioned the upcoming meeting with Chinese President Xi Jinping, stating that there seems to be no reason for such a meeting now.