China announced on Tuesday, October 14 that it is ready to “fight to the end” in a trade war with the United States, responding to US President Donald Trump’s stated intention to impose an additional 100 percent tariffs on Chinese goods.
Trump revealed the tariff threat in a Friday social media post, which came shortly after Beijing’s announcement last week of sweeping new export controls on rare earths, a strategic sector currently dominated by China. Trump also stated that Washington would impose export controls on “any and all critical software” starting November 1.
This latest escalation has unsettled markets and raised doubts about a potential upcoming meeting between President Trump and his Chinese counterpart, Xi Jinping, in South Korea.
“On the matter of tariff wars and trade wars, China’s position remains consistent,” an unnamed commerce ministry spokesperson said in a statement on Tuesday. “If you wish to fight, we shall fight to the end; if you wish to negotiate, our door remains open.”
The statement added a sharp rebuke to the US approach: “The United States cannot simultaneously seek dialogue while threatening to impose new restrictive measures. This is not the proper way to engage with China.”
Trump appeared to temper his language in a Sunday social media post, saying “it will all be fine” and that the United States wants to “help” China.
Meanwhile, official data released on Monday showed that China’s overseas shipments remained resilient despite the darkening trade outlook. China’s exports jumped 8.3 percent year-on-year in September, the fastest expansion since March. Shipments to the United States picked up to reach $34.3 billion for the month.
Currently, Chinese goods face US tariffs of at least 30 percent, stemming from levies Trump imposed while accusing Beijing of unfair trade practices and aiding in the fentanyl trade. China’s retaliatory tariffs are currently set at 10 percent.
The global economic impact of Trump’s renewed tariff push is a major focus this week as the International Monetary Fund and the World Bank hold their semi-annual gathering in Washington. The White House continues to argue that the long-term effect of tariffs will be positive for the United States.
