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 has said.
A Commerce Ministry spokesperson also stated that China could respond with its own unspecified countermeasures if the US President follows through on his threat, emphasizing that they are not afraid of a potential trade war.
Trump accused China of becoming very hostile after it tightened rules on the export of rare earth materials, and threatened to withdraw from an upcoming meeting with China's President Xi Jinping.
His comments led to a significant drop in financial markets, with the S&P 500 index falling by 2.7%—its largest decline since April.
The fear of renewed trade skirmishes comes after both nations agreed to a truce in May to avoid imposing extreme tariffs on each other's goods. Since then, US tariffs on Chinese goods have already increased by 30%, while US goods sent to China currently face a 10% tariff.
China's latest statements, issued via the Commerce Ministry, echo the rhetoric from the peak of their recent trade tensions, condemning US restrictions on exports of chips and other technologies while defending its own measures as necessary for national security.
China emphasized its historical unwillingness to engage in trade wars, repeatedly stating they do not seek conflict but will not back down in the face of threats. Recent announcements regarding restrictions on rare earth exports, critical for tech manufacturing, bolster China's position as a key player in the global supply chain.
The future of the anticipated summit and whether the two leaders will meet remains uncertain amidst this volatile backdrop.
