China shows no sign of backing down while issuing call for US to withdraw tariff threat

Key Points

• China is demanding the U.S. withdraw its recent threat of a 100% tariff on all Chinese imports following China's stricter restrictions on rare earths.
• In a surprising move, China responded to U.S. tariffs, stating that the U.S. is “severely damaging the atmosphere of trade negotiations”, reiterating its stance on protecting its rights and interests.
• President Trump, while not retracting the tariff threat, adopted a more conciliatory tone, expressing a desire to “help China, not hurt it”.
• Recent economic data indicates a 27% drop in Chinese exports to the U.S. for September, continuing a trend of six months of declining exports.

BANGKOK (AP) — China did not back down Monday in a back-and-forth with the U.S. over trade, calling for U.S. President Donald Trump to withdraw his latest threat of a 100% tariff and other export control measures announced over the weekend.

In the latest escalation of the trade war between the two nations, Trump issued the tariff threat on all Chinese imports into the U.S. after China placed stricter restrictions Thursday on rare earths, a vital resource used in electronics.

The Chinese announcement was an apparent surprise to Trump, who called it an “out of the blue” move. While Trump did not withdraw the economic threat, he sounded more conciliatory than in the past, saying in a Truth Social post Sunday, “The U.S.A. wants to help China, not hurt it!!!”

China’s Ministry of Commerce issued a lengthy response Sunday saying the U.S. was “severely damaging the atmosphere of trade negotiations.”

“China urges the U.S. to promptly correct its erroneous practices,” Chinese Ministry of Foreign Affairs spokesman Lin Jian said Monday. “If the U.S. insists on going its own way, China will certainly take resolute measures to safeguard its legitimate rights and interests.”

Both nations have leveraged multiple dimensions of the trade relationship in the trade war, with actions ranging from U.S. restrictions on China’s ability to import advanced computer chips, China ending purchases of American soybeans and an exchange of tit-for-tat port fees.

Economic indicators show the retaliatory actions and uncertainty are impacting trade between the countries. Chinese trade data release Monday showed exports to the U.S. have fallen for six straight months, dropping 27% in September from the year before.