"Beijing has issued a strong warning to Washington, promising retaliation if U.S. President Donald Trump follows through on his threat to impose 100% tariffs on Chinese imports by 1 November - a move that risks reigniting a full-scale U.S.-China trade war. In a statement on Monday, China's commerce ministry accused the U.S. of "wilful threats" that would "escalate tensions and damage global trade stability.""
"The warning came after Trump declared on Friday that his administration was preparing sweeping new tariffs and export controls, including measures targeting critical software and technology sectors. His comments were widely interpreted as a direct response to Beijing's new restrictions on rare-earth exports, materials essential for U.S. defence, semiconductor, and electric vehicle industries. The renewed tensions rattled financial markets worldwide."
"Analysts warned that the tariff threat could further dampen confidence among international investors already wary of slowing growth and tightening credit conditions. Despite the escalation, Trump attempted to strike a softer tone on Truth Social, writing: "The U.S. wants to help China, not hurt it." However, U.S. Senator JD Vance, a prominent Trump ally, urged Beijing to "choose the path of reason" to avoid what he called "unnecessary damage to both economies." Mark McCarthy, Chief Revenue Officer at Basware, said that trade war rhetoric injects deep uncertainty into the corporate sector, particularly for global enterprises dependent on complex supply chains."
China warned of retaliation if the U.S. imposes 100% tariffs on Chinese imports by 1 November, calling U.S. actions "wilful threats" that would "escalate tensions and damage global trade stability." Trump announced preparations for sweeping new tariffs and export controls, widely seen as a response to Beijing's rare-earth export restrictions crucial to defense, semiconductor, and electric vehicle industries. Financial markets reacted sharply, with a steep sell-off wiping trillions from stock values. Analysts cautioned that the tariff threat could further weaken investor confidence and disrupt complex global supply chains, creating deep corporate uncertainty.
Read at Business Matters
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