US President Donald Trump on Thursday confirmed that the United States and China are “in a trade war,” while Beijing accused Washington of unnecessarily causing panic and displayed openness to talks.
The development came days after Trump announced a sweeping 100% tariff on Chinese imports effective November 1 in response to Beijing’s tightening of export controls on rare earth minerals, a crucial resource for advanced technology and defense sectors.
The move from Washington signals a broader offensive, including potential export controls on critical software and dual-use goods.
China has responded with strong rhetoric, defending its export curbs as necessary for national security while signaling willingness to talk.
Trump’s latest remarks on China
While speaking with a reporter on Thursday, President Trump started taking questions on the escalation of trade tensions between the US and China.
When the reporter asked if the two nations are looking at a prolonged trade war, Trump said, “Well, you’re in one now.”
This came as a surprise for everyone, as earlier Trump had signalled a softening of stance against China and US Treasury Secretary Scott Bessent even indicated that a Trump-Xi meeting is still possible.
But, the latest remarks confirmed that the US is maybe looking at a major trade escalation with the Asian giant.
China signals willingness to talk
Even with tensions running high, China seems to be leaving the door open for talks.
Beijing has been clear; it doesn’t want a trade war, but it’s also making sure everyone knows it’s ready to defend its interests if things go that way.
Chinese officials are urging Washington to back off its unilateral tariff threats before any real negotiations can happen.
Meanwhile, state media and trade authorities are doubling down on their stance that the export restrictions are perfectly legitimate, calling them national security measures rather than economic retaliation.
Analysts say this is a carefully balanced move: China’s trying to soften its tone just enough to keep diplomatic options alive, while still pushing back with targeted actions like antitrust investigations into US companies.
Risks, stakes, and what comes next
This latest flare-up in the trade fight is shaking things up again, especially for global supply chains and financial markets already on edge.
Experts are warning that if things get worse, particularly around tech and rare earth minerals, it could slow down economic growth and ramp up risks across the world.
All eyes are now on the upcoming Asia-Pacific Economic Cooperation (APEC) summit, where a possible meeting between Trump and Xi could be a real game-changer.
If China decides to ease up on its export curbs, we might see some breathing room.
But if tensions rise instead, we are likely heading toward another round of tit-for-tat tariffs, export bans, and even tech embargoes.
That kind of escalation wouldn’t just hurt the two biggest economies; it would send shockwaves through industries everywhere, from electronics and defense to high-end manufacturing.
The stakes couldn’t be higher, and the world is watching closely to see which way this goes.
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