(MENAFN- Live Mint) US President Donald Trump took to Truth Social on Sunday (October 12) to address rising tensions with China, following his recent threat to impose a 100% tariff on Chinese imports.

In his post, Trump sought to reassure China's leadership :“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 U.S.A. wants to help China, not hurt it!!!”

The statement comes amid a dispute over China's new export controls on rare earth minerals , essential for both consumer and military technologies. Trump's post underscores his desire to frame the US-China relationship as cooperative despite escalating trade disagreements.

Trump threatens 100% tariff

Tensions escalated between the United States and China as Trump threatened to impose a 100% tariff on Chinese imports in response to Beijing's new export controls on rare earth minerals. The dispute has raised concerns about global supply chains and international trade relations.

Trump's tariff threat is set to take effect on November 1, 2025, or sooner, targeting Chinese imports over and above existing tariffs. He also hinted at potential export controls on“critical software” from American firms, without specifying the scope.

China hits back on rare earth restrictions

China responded on Sunday through its Commerce Ministry, signaling a firm stance:“We do not want a tariff war but we are not afraid of one.”

The ministry urged dialogue over threats and warned that the US actions could trigger reciprocal measures:“If the U.S. side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests.”

China's new export rules require foreign companies to obtain government approval to export rare earths, critical to military and civilian products. The country controls nearly 70% of global rare earth mining and 90% of processing.

JD Vance weighs in

Vice President JD Vance emphasized the economic stakes for the United States, speaing with Fox News:“China has so much control over critical supply in the United States of America. That is the definition of a national emergency and justifies the president's move to impose tough tariffs.”

He added that negotiations remain possible if China chooses to be“reasonable”:“If, however, they're willing to be reasonable, then Donald Trump is always willing to be a reasonable negotiator. We're going to find out a lot in the weeks to come about whether China wants to start a trade war with us or whether they actually want to be reasonable.”

Impact of rare earth controls

Rare earth elements are essential for products ranging from laptops, electric vehicles, and jet engines to military technologies like radar systems.

The Commerce Ministry also highlighted US actions that have escalated tensions, including new port fees on Chinese ships, prompting retaliatory fees on American vessels.

The US and China have been engaged in ongoing trade tensions, with tariffs and restrictions introduced earlier this year. While previous negotiations in Switzerland and the UK had reduced some tariffs, new export controls on rare earths and critical technology have reignited friction.

Trump criticized China for its restrictions:“China is becoming very hostile. They are holding the world captive by restricting access to rare earth metals and magnets.”

The President confirmed that a planned meeting with Chinese leader Xi Jinping during his South Korea trip may still occur, depending on developments, though he said previously that there was 'no reason for him to meet Xi at APEC' in South Korea .

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