On Sunday, President Trump took steps to calm tensions with China after previously threatening to impose a massive 100% tariff on all imports as retaliation for Beijing’s recent export restrictions.
In his post on Truth Social, Trump assured, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment.” He continued, “He doesn’t want a depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”
This statement came after China responded firmly, with its Commerce Ministry urging Washington to avoid “threats” and asserting its commitment to “resolutely take corresponding measures” if the U.S. proceeded with the tariff increase.
“We do not desire a tariff war, but we are not intimidated by one,” the ministry declared, arguing that the threats of tariffs are “not the right approach to engage with China.”
Trump had announced on Friday plans for these sweeping tariffs and hinted at the possibility of canceling his scheduled meeting with Chinese President Xi Jinping on Oct. 29.
The tensions escalated following a new regulation from the Chinese Commerce Ministry, which mandated that companies must secure approval to export items containing or made with rare-earth minerals, which are vital for products like batteries and semiconductors.
Trump claimed this regulation would significantly harm the global economy, potentially obstructing the supply chain for key products.
China’s new requirement could compel other nations to obtain licenses for exporting products with over 0.1% rare earth content, intensifying the ongoing trade conflict with the U.S. concerning semiconductor chips used in mobile phones, computers, and AI data centers.
According to The Wall Street Journal, China accounts for approximately 90% of the global production of rare-earth minerals necessary for these technologies.
On Friday, U.S. stocks plummeted following Trump’s announcement of a “massive increase” in tariffs on China.
The Dow Jones Industrial Average fell by 878 points, or 1.9%, reaching 45,479.60, with the S&P 500 and tech-heavy Nasdaq declining by 2.7% and 3.6%, respectively, marking the largest one-day percentage drops since April.
Trump has given Beijing until Nov. 1 to alter its course.
Vice President JD Vance supported Trump’s stance during an appearance on Fox News “Sunday Morning Futures,” presenting the situation as a national security issue.
“It’s going to be a delicate negotiation, hinging significantly on the Chinese response. If they react aggressively, I assure you the President of the United States possesses far more strategies than the People’s Republic of China,” Vance remarked on the show.
Additionally, the Commerce Ministry criticized the U.S. for proceeding with new port fees on Chinese vessels, to be enforced starting Tuesday, prompting China to announce that it will impose reciprocal port fees on American ships.
With Post wires
