Photo Credit: Henry Chen
China retaliates against Trump’s recent 100% tariff threat, potentially leaving the “TikTok USA” agreement on the cutting room floor.
At the eleventh hour, it’s not looking good for the future of TikTok in the United States. If U.S. President Donald Trump imposes new 100% tariffs on Chinese imports, as he threatened to do over the weekend, Beijing has vowed to respond accordingly.
Trump’s new threat comes after China unleashed a slew of export restrictions on rare earth minerals last week, which has led to increasing tensions between the two nations and threatened to upend months of progress in trade talks.
That rapidly escalating trade tension has soured stocks, igniting fears of a renewed tariff battle, and rattling industries and investors alike. It also adds new uncertainty to the potential deal with Beijing to spin TikTok off into a separate U.S. operated entity. Further, it casts doubt on whether the much anticipated meeting in South Korea between Trump and Chinese leader Xi Jinping will still take place in the planned two weeks’ time.
“Resorting to threats of high tariffs is not the right way to engage with China,” said a Ministry of Commerce spokesperson in Beijing’s first public comments on the matter. “If the U.S. persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests,” the spokesperson continued. “Our position on a tariff war remains consistent—we do not want one, but we are not afraid of one.”
On his Truth Social, Trump said that the U.S. would impose new 100% tariffs on imports from China “over and above any tariff that they are currently paying,” starting November 1. He also said the U.S. would impose export controls on “any and all critical software.”
Trump added that “there is no way that China should be allowed to hold the world captive” with its rare earth minerals policy—a statement that seemed to directly contribute, based on its timing, to the plunging stock market.
China’s sweeping new rare earth metals changes included an expanded list of minerals deemed restricted, as well as extending curbs targeting their production technologies and overseas use. This is expected to have serious impact on global industries and tech supply chains.
