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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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EU Must End ‘Naivety’ on Trade and Confront China’s Industrial Strategy, Says French Minister
France’s Minister for Foreign Trade, Nicolas Forissier, has called on the European Union to abandon what he described as “naivety” in its approach to global trade, urging a tougher stance on countries accused of distorting markets through industrial policy and trade practices.
Speaking in an interview with Euronews’ 12 Minutes With programme, Forissier said Europe must respond more firmly to what he described as the weaponisation of trade dependencies, warning that China in particular could damage its own long-term interests by undermining European industry.
“The Chinese have to understand that they won’t win anything if they destroy the European industry and then the European market, which is an essential market for them,” he said. “We must no longer be naive.”
His comments come as the European Commission prepares to hold an “orientation debate” next week on how to respond to a surge of low-cost Chinese imports. The discussion is expected to shape possible new trade defence measures, with further talks likely when EU leaders meet in Brussels in mid-June.
Forissier said the shift in thinking was not limited to China alone but applied to any country using commercial leverage to gain strategic advantage. “It is not only China,” he said. “It is all the countries that weaponise trade.”
Among the proposals under consideration is a requirement for EU companies to diversify supply chains, sourcing components from at least three different suppliers in order to reduce dependency on any single foreign market. Asked whether he supported such a measure, Forissier replied: “Yes, we have to.”
Other options include targeted tariffs on sensitive industries such as chemicals, alongside stronger use of anti-dumping and anti-subsidy tools to counter imports priced below domestic market levels. These measures are designed to address concerns over overcapacity in China’s industrial sector and its impact on European manufacturers.
The debate is taking place against a backdrop of widening trade imbalances. EU goods imports from China exceeded exports by €359.3 billion in 2025, marking an increase of nearly 20% compared with the previous year.
China has already warned it could retaliate if the bloc imposes new restrictions, raising concerns about potential escalation in trade tensions between two of the world’s largest economies.
France has repeatedly pushed for a more assertive European trade policy, arguing that state subsidies, export controls on raw materials and industrial overproduction in major economies are distorting global markets.
Forissier stressed that Europe must maintain open dialogue with Beijing while defending its own industrial base. “We try to respect the Chinese,” he said. “The Chinese have to respect us, and this is the message European institutions have to send.”
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