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China Warns U.S. Against Tariff Escalation Amid Rare Earths Dispute
China has vowed not to back down in the face of U.S. tariff threats, warning that it will take “resolute countermeasures” if Washington proceeds with new import taxes, the Chinese Commerce Ministry said on Sunday.
“China’s stance is consistent,” the ministry said in an online statement. “We do not want a tariff war, but we are not afraid of one.”
The warning came two days after U.S. President Donald Trump threatened to impose 100 percent tariffs on Chinese imports starting November 1. The move was reportedly a response to Beijing’s new restrictions on the export of rare earth elements — critical minerals used in technologies ranging from electric vehicles and smartphones to radar systems and jet engines.
In a post presented as a Q&A with an unnamed ministry spokesperson, Beijing urged Washington to resolve trade differences “through dialogue, not coercion.” The ministry cautioned that “frequently resorting to the threat of high tariffs is not the correct way to get along with China,” adding that if the U.S. “obstinately insists on its practice,” China will act to defend its legitimate interests.
The exchange threatens to reignite a tariff confrontation between the world’s two largest economies and casts doubt over a potential meeting between Trump and Chinese President Xi Jinping. Earlier this year, both nations had briefly imposed tariffs exceeding 100 percent before agreeing to a truce.
Trump accused China of “becoming very hostile” and of “holding the world captive” by limiting access to rare earth metals and magnets. China’s new rules require foreign firms to obtain special approval to export products containing even trace amounts of Chinese-sourced rare earths — minerals essential to both commercial and military applications.
Beijing maintains that the restrictions are aimed at ensuring responsible resource management and protecting national security. The Commerce Ministry said export licenses would continue to be granted for “legitimate civilian uses” but noted that the minerals’ strategic value necessitated tighter oversight.
China dominates the global rare earths market, accounting for nearly 70 percent of global mining and around 90 percent of processing. The country’s control over the supply chain has become a focal point in trade tensions with Washington, as the U.S. seeks to diversify supply sources and reduce dependence on Chinese materials.
The ministry also criticized recent U.S. actions, including the expansion of export controls on Chinese firms and the introduction of new port fees on Chinese vessels set to take effect Tuesday. In retaliation, Beijing announced on Friday that it would impose reciprocal fees on American ships.
With both sides trading new economic blows, the fragile calm in U.S.–China trade relations appears increasingly at risk, raising fears of another round of global market turbulence.
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Iran Claims Strikes on US Bases as Hormuz Tensions Escalate
Iran’s Revolutionary Guards Corps (IRGC) said early Wednesday it had launched attacks against US military facilities in Bahrain and Kuwait, marking another escalation in the conflict as the United States continued military operations against Iran and renewed restrictions on Iranian shipping in the Strait of Hormuz.
The IRGC said it targeted the US Fifth Fleet’s command-and-control facilities, logistical centres, petroleum installations and military equipment in Bahrain, along with a US base in Kuwait. Iranian state media described the strikes as retaliation for recent American military operations and efforts to control maritime traffic through the Strait of Hormuz.
In a statement carried by local media, the IRGC warned that if Washington continued trying to restrict regional oil and gas exports by controlling key shipping routes, Iran would seek to disrupt other energy corridors serving US and allied interests. The statement declared that regional energy exports would be “for everyone or for no one,” although it did not specify which routes could be targeted.
Missile warning systems were activated in Bahrain and Kuwait as Iranian projectiles approached. Jordanian authorities said their air defence systems intercepted three incoming Iranian missiles, while Kuwait’s military reported repelling Iranian drone attacks. Iran also claimed it had targeted US military facilities at Jordan’s Azraq Air Base for a second time.
US Navy Admiral Brad Cooper, commander of US Central Command, confirmed that Iran had launched dozens of missiles and drones toward neighbouring Gulf countries.
The latest exchange came after the US military carried out a fourth consecutive night of operations against Iranian targets. According to US Central Command, fighter aircraft, drones and naval vessels conducted a seven-hour mission targeting Iranian missile and drone sites, naval assets and coastal defence systems.
CENTCOM said the strikes were intended to reduce Iran’s ability to threaten commercial shipping and civilian vessels operating in and around the Strait of Hormuz, a waterway that normally handles around one-fifth of the world’s oil and liquefied natural gas trade.
President Donald Trump also renewed warnings that the United States could expand its campaign if diplomatic efforts fail. In a televised interview with Fox News on Tuesday night, Trump said Washington would eventually target Iran’s energy infrastructure unless Tehran agreed to return to negotiations.
“We’re going to knock out all their power plants. We’re gonna knock out their bridges unless they get to the table and negotiate,” Trump said, adding that energy facilities remained potential targets.
The latest hostilities have cast further doubt over a temporary agreement reached in June after the United States lifted an earlier blockade of Iranian shipping to allow negotiations over Tehran’s nuclear programme. Talks have since stalled as military confrontations around the Strait of Hormuz intensified, raising concerns about regional security and the stability of global energy supplies.
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