BEIJING (AP) — China signaled on Sunday that it would not back down in the face of a 100% tariff threat from President Donald Trump and urged the United States to resolve differences through negotiations instead of threats.
Trump responded by taking a less confrontational approach without retreating from his demands, while his vice president seemed to warn Beijing not to react aggressively.
On Friday, the broad S&P 500 stock market index plunged 2.7%, its worst day in about six months after Trump’s tariff threat.
Vice President JD Vance said Trump was committed to protecting America’s economic livelihoods while making the U.S. more self-sufficient.
In addition to the 100% tariff, Trump threatened to impose export controls on what he called “critical software,” without specifying what that means.
BEIJING (AP) — In response to President Donald Trump’s threat of a 100 percent tariff, China signaled on Sunday that it would not back down and urged the US to settle disagreements through dialogue rather than threats. In response, Trump adopted a less combative stance without renouncing his demands, but his vice president appeared to caution Beijing against a violent response.
“China has a consistent position,” the Commerce Ministry stated in an online statement. Although we are not scared of a tariff war, we do not want one. “.”.
It was China’s first formal response to Trump’s pledge to raise import duties by November. 1 in reaction to recent actions taken by China to restrict the export of rare earths, which are essential to many consumer and military goods.
Trump sent a message to Chinese leader Xi Jinping from his Truth Social platform a few hours later.
“China is not a concern; everything will be alright!” the Republican president wrote. “The highly esteemed President Xi simply had a rough patch. He and I both oppose a depression in our nation. The U. S. 1. prefers to aid China rather than harm it.
Trump might have had a look at the U.S. S. economic markets on the eve of the upcoming workweek. On Monday, the stock market will be open, but bond markets will be closed in observance of Columbus Day. Following Trump’s tariff threat, the broad SandP 500 stock market index fell 2 and a half percent on Friday, its worst day in roughly six months.
A potential meeting between Trump and Xi could be derailed by the back and forth, which also threatens to break the truce in a trade war where new tariffs from both sides briefly exceeded 100 percent in April.
Trump, according to Vice President JD Vance, is dedicated to preserving American economic livelihoods while making the U.S. S. . more independent. . He claimed that Trump’s decision to impose strict tariffs is justified because China has “so much control over critical supply in the United States of America,” which is the definition of a national emergency.
A lot of it will rely on how the Chinese react, so it will be a delicate dance. On Fox News Channel’s “Sunday Morning Futures,” Vance stated, “I promise you the president of the United States has far more cards than the People’s Republic of China if they react in a very aggressive manner.”. “”.
However, Donald Trump is always willing to be a reasonable negotiator if they are willing to do so. We will learn a lot in the upcoming weeks regarding whether China genuinely wants to be reasonable or if they intend to launch a trade war with us,” Vance added. “I hope they decide on the sensible course. Regardless, the president of the United States will defend the country. “.”.
Trump has increased import duties from numerous U.S. A. trading partners in an effort to obtain concessions since taking office in January. Making use of its economic power, China has been one of the few nations that hasn’t given up.
In its post, the Commerce Ministry stated that “repeatedly using the threat of high tariffs is not the right way to get along with China.” The post was delivered as a series of responses from an unidentified spokesperson to four questions posed by unidentified media outlets.
According to the statement, any issues should be discussed.
“If the U. A. China will take decisive action to protect its legitimate rights and interests if the other side stubbornly insists on its practice, the post stated.
Trump threatened to institute export restrictions on what he described as “critical software,” without providing a definition, in addition to the 100 percent tariff.
By enacting new trade restrictions, both sides accuse the other of breaking the spirit of the truce.
According to Trump’s social media post, China is “becoming very hostile” and enslaving the world by limiting access to magnets and rare earth metals.
According to the Chinese Commerce Ministry post, the U. S. . has expanded the number of Chinese companies subject to U.S. regulations, among other new restrictions, in recent weeks. A. limits on exports.
Although rare earths have military uses, the ministry stated that export licenses would be given for acceptable civilian purposes.
According to the new rules, foreign businesses must obtain Chinese government approval before exporting goods made in China that contain rare earth elements, regardless of where the goods are made.
In addition to controlling about 90% of the world’s rare earth processing, China is responsible for almost 70% of the world’s rare earth mining. One of the main issues in Washington-Beijing trade negotiations is access to the material.
From consumer electronics like laptops and phones to electric vehicles, radar systems, and jet engines, the essential minerals are used in a wide range of products. European and other manufacturers, in addition to American ones, have been impacted by China’s export restrictions.
According to the Commerce Ministry’s statement, the U. S. . is disregarding the concerns of China by implementing new port charges on Chinese vessels that go into effect on Tuesday. China responded by declaring on Friday that it would charge port fees to American vessels.
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Associated Press writer Darlene Superville and AP Economics Writer Christopher Rugaber in Washington contributed to this report.
