Trump Calms China Trade War Fears After 100% Tariff Threat

President Donald Trump sought to ease concerns of a full-scale trade war with Beijing on Sunday, telling Americans to “don’t worry about China” just hours after threatening a bold 100% tariff on all Chinese imports in response to China's latest economic provocation.

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

The statement followed a sharp escalation in tensions after China moved to restrict the export of rare earth minerals, materials critical for advanced manufacturing, defense systems, and clean energy technology. In response, Trump threatened to double current tariffs raising the average levy on Chinese goods from 55% to 100% by November 1.

China’s Commerce Ministry quickly hit back, saying it “does not want a tariff war” but is “not afraid of one.” The ministry warned that if the U.S. “obstinately insists” on more tariffs, China would “resolutely take corresponding measures.”

“Repeated tariff threats are not the correct way to get along with China,” the Chinese government said, urging Washington to pursue dialogue instead of confrontation.

So far, there’s no indication that Beijing plans to walk back its rare earth restrictions a move widely seen as economic blackmail, given China’s near-monopoly on the global supply chain. China currently controls over 70% of rare earth mining and nearly 90% of global processing capacity giving it dangerous leverage over Western technology manufacturing.

Vice President JD Vance backed Trump’s hard line in an appearance on Fox News Sunday Morning Futures, calling China’s dominance in key supply chains “the definition of a national emergency.”

“If they respond in a highly aggressive manner, I guarantee you the President of the United States has far more cards than the People’s Republic of China,” Vance said. “We’re not going to let China bully us by threatening our national security.”

Trump’s team insists the U.S. isn’t seeking economic destruction it’s seeking fairness and leverage in a system that’s been rigged against America for decades.

The stakes are enormous. Not only do rare earth minerals power everything from smartphones to fighter jets, but Beijing’s ability to choke off supply poses a clear and present danger to the U.S. military and manufacturing base. Trump’s move to escalate tariffs is seen as a preemptive strike to force China back to the table from a position of strength.

The renewed tension casts doubt on a planned meeting between Trump and Xi Jinping later this year, one that was expected to mark progress toward economic normalization. That now seems increasingly unlikely unless Beijing backs down on its rare earth threat.

Meanwhile, China's Commerce Ministry attempted to soften the optics by claiming that export licenses would still be granted for "legitimate civilian use" but made no such promise for companies tied to national security or defense.

For Trump, this is a return to the America First economic strategy that reshaped U.S.-China relations during his first term: tariffs, pressure, and forcing adversaries to the negotiating table through economic strength not appeasement.

Trump’s message is simple: America will not be held hostage by a Communist regime that manipulates markets and threatens global supply chains. And if China wants to test the limits, they’ll quickly find that the U.S. holds more leverage than they’d like to admit.

“We can clean this up and we will,” Trump said last month in reference to both China and domestic manufacturing.

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