(MENAFN- Live Mint) China signalled on Sunday that it would stand firm against US President Donald Trump's threat to impose a 100% tariff, urging the US to settle disputes through negotiation rather than coercion.

In response, Trump adopted a more measured tone but held firm on his demands, while his vice president appeared to caution China against any aggressive response.

What did China say?

China Commerce Ministry said,“Threatening with high tariffs at every turn is not the right way to get along with China. If the US persists in its own course, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.”

The statement called for addressing any concerns through dialogue.

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“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,” the post said.

In addition to the 100% tariff, Trump threatened to impose export controls on what he called“critical software,” without specifying what that means.

Both sides accuse the other of violating the spirit of the truce by imposing new restrictions on trade.

Hours later, Trump used his Truth Social platform to send a message to Chinese leader Xi Jinping.

Here's what Trump said

“Don't worry about China, it will all be fine!” the Republican president wrote.“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!!!”

While leaving for Israel, Trump said,“I have a great relationship with President Xi; I am not saying he is wrong but then we met him with something much tougher than what he did to us, again because of the tariffs, it's much tougher.”

China produces nearly 70% of the world's rare earth minerals and handles about 90% of their global processing, making access to these resources a major sticking point in trade negotiations with the US.

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These critical minerals are essential for a wide range of products, including jet engines, radar systems, electric vehicles, and consumer electronics like laptops and smartphones. China's export restrictions have impacted manufacturers not only in the US but also in Europe and other regions.

In a statement, China's Commerce Ministry criticised the US for disregarding its concerns by moving ahead with new port fees on Chinese vessels, set to take effect Tuesday.

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In response, China announced on Friday it would impose similar port charges on American ships.

(With inputs from agencies)

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