BEIJING (AP) — China signaled Sunday it would not back down from a 100% tariff threat by President Donald Trump, urging the United States to resolve its differences through negotiation rather than threats. US Vice President JD Vance defended Trump’s position and appeared to warn China not to be aggressive in its response.
“China’s position is consistent,” the Commerce Ministry said in a statement posted online. “We don’t want a tariff war, but we’re not afraid of it. »
This is China’s first official comment on Trump’s threat to raise taxes on imports from China by November 1 in response to new Chinese restrictions on the export of rare earths, which are vital for a wide range of consumer and military products.
This 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 on both sides briefly topped 100% in April.
In response, Vance said Sunday that Trump was committed to protecting America’s economic livelihood while making the United States more self-sufficient. He said that the fact that China has “such control over critical supplies to the United States of America” is the definition of a national emergency and therefore justifies Trump’s decision to impose harsh tariffs.
“It’s going to be a delicate dance and a lot of it will depend on how the Chinese respond. If they respond very aggressively, I guarantee you the president of the United States has a lot more cards than the People’s Republic of China,” Vance said on Fox News Channel’s “Sunday Morning Futures.”
“If they want to be reasonable, then Donald Trump is still willing to be a reasonable negotiator. We’re going to learn a lot in the coming weeks 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 will defend America regardless.”
Trump has raised taxes on imports from many of the United States’ trading partners since taking office in January, seeking concessions. China is one of the few countries not to back down, relying on its economic weight.
“Frequently resorting to the threat of high tariffs is not the right way to get along with China,” the Commerce Ministry said in its message, presented as a series of responses from an anonymous spokesperson to four questions posed by unspecified media outlets.
The statement calls for addressing any concerns through dialogue.
“If the US side persists in maintaining this practice, China will resolutely take corresponding measures to safeguard its legitimate rights and interests,” the message said.
In addition to 100% tariffs, Trump has threatened to impose export controls on what he calls “critical software,” without specifying what that means.
Both sides accuse each other of violating the spirit of the truce by imposing new restrictions on trade.
Trump said in a social media post that China was “getting very hostile” and was holding the world captive by restricting access to rare earth metals and magnets.
China’s Commerce Ministry said the United States had introduced several new restrictions in recent weeks, including increasing the number of Chinese companies subject to U.S. export controls.
Regarding rare earths, the ministry said export licenses would be granted for legitimate civilian uses, noting that the minerals also have military applications.
The new regulations require foreign companies to obtain approval from the Chinese government to export items containing rare earths from China, regardless of where the products are manufactured.
China accounts for nearly 70% of global rare earth mining and controls around 90% of their global processing. Access to hardware is a key point of contention in trade negotiations between Washington and Beijing.
Essential minerals are used in many products, from jet engines, radar systems and electric vehicles to consumer electronics, including laptops and phones. China’s export controls have hit European and other manufacturers, as well as U.S. manufacturers.
The Commerce Department statement said the United States is also ignoring Chinese concerns by imposing new port taxes on Chinese ships that take effect Tuesday. China announced Friday that in response he would impose port charges on American ships.
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Associated Press writer Darlene Superville in Washington contributed to this report.
