China says it won’t back down from Trump’s 100 per cent tariff threat

It was China's first official comment on Trump's threat to jack up the tax on imports from China by Nov. 1 in response to new Chinese restrictions on the export of rare earths.

China signaled Sunday that it would not back down in the face of a 100 per cent tariff threat from President Donald Trump, urging the U.S. to resolve differences through negotiations instead of threats. U.S. Vice President JD Vance defended Trump’s position and seemed to warn China not to be aggressive in its response.

“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”

It was China’s first official comment on Trump’s threat to jack up the tax on imports from China by Nov. 1 in response to new Chinese restrictions on the export of rare earths, which are vital to a wide range of consumer and military products.

The back and forth threatens to derail a possible meeting between Trump and Chinese leader Xi Jinping and end a truce in a trade war in which new tariffs from both sides briefly topped 100 per cent in April.

In response, Vance said Sunday that Trump is committed to protecting America’s economic livelihoods while making the United States more self-sufficient. He said the fact that China has “so much control over critical supply in the United States of America” is the definition of a national emergency and therefore justifies Trump’s move to impose tough tariffs.

“It’s going to be delicate dance and a lot of it is going to depend on how the Chinese respond. If they respond in a highly aggressive manner, I guarantee you the president of the United States has far more cards than the People’s Republic of China,” Vance said on Fox News Channel’s “Sunday Morning Futures.”

“If, however, they’re willing to be reasonable, then Donald Trump is always willing to be a reasonable negotiator. We’re going to find out a lot in the weeks to come about whether China wants to start a trade war with us or whether they actually want to be reasonable,” Vance continued. “I hope they choose the path of reason. The president of the United States is going to defend America regardless.”

Trump has raised taxes on imports from many U.S. trading partners since taking office in January, seeking to win concessions. China has been one of the few countries that hasn’t backed down, relying on its economic clout.