China vowed retaliation after the US threatened 100% tariffs over Beijing’s new rare-earth export controls, escalating trade tensions ahead of planned talks.
Oct. 12, 2025 — Beijing warned it would respond firmly after US President Donald Trump said he might impose a 100% tariff on Chinese imports by November.
China’s Commerce Ministry urged Washington to resolve disputes through negotiation, saying Beijing does not seek a tariff war but will not shrink from one. The ministry reiterated that export licences for rare earths will be issued for legitimate civilian use while underscoring the minerals’ military significance.
The spat follows new Chinese rules requiring foreign firms to obtain special approval to export products containing even small amounts of China-sourced rare earths — critical inputs for jet engines, radar, electric vehicles, magnets and consumer electronics. China produces about 70% of mined rare earths and processes roughly 90% of global output, giving it leverage in trade talks.
Both sides accuse each other of breaching a fragile truce through fresh trade controls: Washington has expanded export curbs and added port fees on Chinese ships, and Beijing has announced reciprocal measures. The exchange complicates prospects for a planned meeting between Presidents Trump and Xi and raises the risk of further tit-for-tat measures.