Summary
China has accused the United States of using "double standards" after President Donald Trump threatened to impose an additional 100% tariff on Chinese goods. China stated it could respond with its own measures if the U.S. follows through with the threat. The exchange has increased fears of a trade war between the two countries.
Key Facts
- President Trump threatened to impose an additional 100% tariff on Chinese goods.
- China labeled the threat as an example of "double standards."
- China said it might introduce its own unspecified countermeasures if the tariff is imposed.
- Financial markets were affected, with the S&P 500 index dropping 2.7%.
- Both countries had previously agreed to lower tariffs, which increased earlier this year.
- China's Commerce Ministry criticized U.S. export restrictions on chips and defended its own export controls on rare earths.
- China processes around 90% of the world's rare earths, which are vital for tech manufacturing.
- Uncertainty surrounds a planned meeting between President Trump and China's President Xi Jinping later this month.
