China Vows Countermeasures After Trump Escalates Tariff Threats

China condemned U.S. President Donald Trump’s threat to impose 100% tariffs on Chinese goods, warning of countermeasures and sparking global market fears of a renewed trade war.

China has sharply criticised U.S. President Donald Trump’s latest threat to impose an additional 100% tariff on Chinese imports, accusing Washington of “typical double standards” and warning that Beijing will consider countermeasures if the plan moves forward.

The statement from China’s Ministry of Commerce on Monday came just hours after Trump’s remarks reignited fears of a renewed trade war between the world’s two largest economies. The U.S. president said the move was aimed at protecting American industries from what he described as “unfair Chinese trade practices,” a claim Beijing has repeatedly rejected.

The escalating rhetoric follows China’s recent decision to tighten export controls on rare earth materials — critical minerals essential for manufacturing electronics, electric vehicles, and defence technologies. Analysts say the tit-for-tat actions could strain global supply chains and further unsettle fragile post-pandemic recovery efforts.

Financial markets reacted swiftly. Wall Street closed sharply lower, with major indices posting their steepest declines in weeks, while Asian markets followed suit on Tuesday morning. The yuan dipped against the dollar, and commodity prices wavered as investors braced for potential escalation.

Trump’s comments also come ahead of his scheduled meeting with Chinese President Xi Jinping, where both leaders are expected to discuss trade relations and global economic stability. Observers warn that any hardline posturing before the talks could jeopardise diplomatic progress and fuel further uncertainty among global investors.

Economists caution that renewed tariff tensions could have wide-ranging implications. A full-scale trade confrontation, they argue, would not only harm U.S. and Chinese exporters but also ripple through global markets dependent on steady trade flows between the two nations.

For now, Beijing’s response remains measured but firm. “China does not seek conflict, but it will defend its legitimate rights and interests,” a spokesperson said, urging Washington to engage in “rational dialogue rather than coercive threats.”

In a world deeply entwined by commerce, even the talk of tariffs can send tremors across continents — a reminder that economic warfare, unlike the conventional kind, strikes fastest through markets rather than missiles.