China Rejects US Sanctions, Warns of Countermeasures Over Tariff Threats

China has strongly condemned the latest round of US restrictions and sanctions, vowing to take “necessary measures” to safeguard its legitimate rights and interests amid renewed trade tensions between the two global powers.

In a post on X, Chinese Foreign Ministry spokesperson Lin Jian said, “China firmly rejects the recent US restrictions and sanctions on China, and will do what is necessary to protect its legitimate rights and interests.”

He criticised Washington’s escalating tariff threats, saying, “Threatening high tariffs is not the right way to deal with China,” and urged the US to “correct its approach and act on the common understandings the two presidents reached in their phone calls.”

Lin further emphasised that both sides “can and should address each other’s concerns through dialogue and manage differences on the basis of equality, respect, and mutual benefit to keep bilateral ties on a steady and sustainable track.”

Trump Seeks to Ease Tensions

The remarks came as US President Donald Trump attempted to tone down hostilities, calling Chinese President Xi Jinping “highly respected” and expressing optimism about future relations.

On Truth Social, Trump wrote, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The USA wants to help China, not hurt it!”

The White House later echoed Trump’s remarks in a post on X, saying, “It is impossible to believe that China would have taken such an action, but they have, and the rest is history.”

Tariff Threats and Rare Earths Dispute

The diplomatic exchange followed Trump’s threat to impose 100% tariffs on Chinese imports, prompting Beijing to vow countermeasures if Washington follows through, CNN reported.

The latest tension was triggered after China announced new export restrictions on rare earth minerals — critical materials for high-tech and defence industries — a move that escalated the trade conflict and jeopardised months of negotiation progress.

Reacting to Trump’s threat, a Chinese Ministry of Commerce spokesperson said, “Resorting to threats of high tariffs is not the right way to engage with China. If the US persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests. Our position remains consistent — we do not want a tariff war, but we are not afraid of one.”

Global Impact and Uncertain Summit

According to CNN, the rapid escalation between the world’s two largest economies has unsettled global markets, dragging down stock indexes and reviving fears of another tit-for-tat tariff war. Earlier this year, duties on Chinese and American imports had climbed as high as 145% and 120%, respectively.

The renewed tensions have also cast doubt over the planned Trump–Xi meeting in South Korea, scheduled for two weeks from now. Citing the rare earths dispute, Trump has reportedly expressed uncertainty about whether the meeting will go ahead.