(qlmbusinessnews.com . Mon 13th Oct, 2025) London, UK —
US-China Trade Tensions Escalate: Potential Cancelling of Key Trump-Xi Summit Looms
China has labelled the United States President Donald Trump's latest proposal to levy an additional 100% tariff on Chinese imports as a “typical example of US double standards”. This statement came from a spokesperson of China's Commerce Ministry, who also mentioned that China would not hesitate to implement its own “countermeasures” should President Trump follow through with his threat. The spokesperson emphasised China's readiness to face a potential trade war, underlining that the country was “not afraid”.
In a recent escalation, President Trump criticised Beijing's decision to tighten regulations on the export of rare earth materials, accusing China of becoming “very hostile” and attempting to make the world “captive”. This was followed by Trump's warning that he might cancel an upcoming meeting with China's President Xi Jinping.
However, Trump appeared to soften his stance in a Sunday post, commenting, “Don't worry about China, it will all be fine!”. He praised President Xi as “highly respected” and dismissed the possibility of either country wanting a depression. He claimed, without offering details, that “The U.S.A. wants to help China, not hurt it!!!”
Trump's remarks last Friday had caused a stir in financial markets, leading to a 2.7% drop in the S&P 500 share index – the most significant decline since April. This reignited concerns over a possible trade war between the US and China, disrupting a brief period of calm where both nations had agreed to withdraw the triple-digit tariffs previously imposed on each other's goods. These tariffs had threatened to freeze trade between the two economic powerhouses.
As of now, US goods entering China are subject to a 10% tariff, while Chinese imports into the US have seen a 30% levy increase since the year's start. China's Commerce Ministry expressed its criticisms through written responses to journalists, condemning US export restrictions on chips and semiconductors and defending its own control over rare earth exports as necessary national security measures.
The spokesperson criticised the US's approach to national security, export controls, and discriminatory practices against China, stating, “Resorting to tariff threats is not the right way to engage with China.” The official reaffirmed China's stance on a tariff war, highlighting its consistency: “we do not want one, but we are not afraid of one.”
The backdrop to these developments includes China's recent move to tighten export controls on rare earths and other critical materials for advanced technology manufacturing. Given that China processes around 90% of the world's rare earths—essential for products like solar panels and smartphones—this step is seen as significant.
The exchange of statements between Washington and Beijing is perceived by some as posturing ahead of potential future trade negotiations. However, whether the anticipated summit in South Korea this month, expected to include a meeting between Trump and Xi, will proceed remains uncertain.
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