Donald Trump’s latest threat to impose an additional 100% tariff on Chinese goods is “a typical example of US double standards”, China’s government said.
A Ministry of Commerce spokesperson also said China could introduce its own unspecified “countermeasures” if the US President follows through on his threat, adding that it is “not afraid” of a possible trade war.
On Friday, Trump reacted to Beijing’s decision to tighten rules on rare earth exports, accusing China of “getting very hostile” and trying to hold the world “captive.”
He also threatened to withdraw from a meeting with Chinese President Xi Jinping scheduled for later this month.
Trump’s comments on Friday shook financial markets, with the S&P 500 stock index closing down 2.7%, the sharpest drop since April.
The president’s words renewed fears of a trade war between the US and China.
In May, the two sides agreed to reduce triple-digit tariffs on each other’s products. which raised the prospect of interruption of trade between the two countries.
This left US tariffs on Chinese goods facing an additional 30% tariff compared to the beginning of the year, while US goods entering China face a 10% tariff.
China’s latest remarks – released by the Ministry of Commerce in the form of written responses to journalists’ questions – echoed language at the height of the recent trade conflict.
They criticized U.S. export restrictions on chips and semiconductors, as well as defending China’s own export controls on rare earths as “normal actions” to safeguard national security and that of all nations.
The spokesperson said that for “a long time” the US “excessively stretched the concept of national security, abused export control measures” and “adopted discriminatory practices against China”.
“Resorting to tariff threats is not the right way to interact with China,” the spokesperson said.
“China’s position on a tariff war has always been consistent: we don’t want one, but we are not afraid of one.”
Last week, China announced it was tightening export controls on rare earths and other materials essential for advanced technology manufacturing.
This was seen as a fundamental move, as the country processes around 90% of the world’s rare earths, which are used in goods such as solar panels and smartphones.
Recent comments from Washington and Beijing are being seen by some as a means of strengthening positions ahead of future trade negotiations.
It is unclear whether a meeting between Donald Trump and Xi Jinping, scheduled for a summit in South Korea later this month, will still go ahead.
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