🇺🇸Trump Eases Tariff Threats as China Warns: ‘Not the Right Way to Get Along’

A weekend marked by tariff turbulence ended with little lasting consequence — a familiar rhythm in recent months. By Monday, the storm had largely subsided, leaving markets and policymakers to digest yet another round of economic brinkmanship.

---

Last week, Beijing’s announcement of tighter export controls on rare earth minerals — essential components for advanced electronics and defense systems — triggered a sharp response from former President Donald Trump. In a flurry of late-night Truth Social posts on Friday, Trump accused China of trying to “hold the world captive” and declared that the U.S. would impose 100 percent tariffs on Chinese goods starting November 1. Markets immediately sank, with the S&P 500 and Nasdaq suffering their worst declines since April.

But by Sunday evening, Trump’s tone had shifted dramatically. “Don’t worry about China, it will all be fine!” he posted. “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!!!”

Administration officials quickly followed his lead. Vice President JD Vance told Fox News that Trump “is always willing to be a reasonable negotiator,” emphasizing the “friendship” between the two leaders. Treasury Secretary Scott Bessent echoed that message Monday morning, assuring viewers that relations with Beijing remained “good” and that the proposed 100 percent tariffs “do not have to happen” if both sides make progress in talks. He confirmed that the upcoming Trump-Xi meeting at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea was still scheduled to proceed.

The White House’s softer tone prompted Wall Street to recover roughly half of Friday’s losses — a familiar pattern for investors. In recent months, Trump’s late-week social media threats have repeatedly roiled markets, only to be tempered days later by reassurances of diplomacy and “great deals” on the horizon.

What do we need to know

The weekend’s tariff flare-up followed a now-familiar pattern of threats and retreats in U.S.–China relations.

Both sides appear keen to avoid escalation ahead of the APEC summit.

Despite tough talk, economic interdependence limits real confrontation.

Markets rebounded as investors doubted the 100% tariffs will take effect.

For now, this seems less a breakthrough than a brief calm before the next trade storm.

This cycle of escalation and retreat hasn’t gone unnoticed. Prediction platform Polymarket showed on Monday that only 13 percent of traders believe Trump’s threatened 100 percent tariffs will actually take effect on November 1 — down sharply from 54 percent on Friday, reflecting widespread skepticism over the durability of his declarations.

China, however, responded sternly. Its Commerce Ministry defended the new export controls as “normal actions” consistent with international law, accusing Washington of hypocrisy for “abusing export control measures” and applying “unilateral long-arm jurisdiction” against Chinese companies. The ministry argued that recent U.S. restrictions — including additions to the Entity List following trade talks in Madrid — had “undermined the atmosphere of bilateral negotiations.”

“Willful threats of high tariffs are not the right way to get along with China,” the statement read. “Our position is consistent: we do not want a trade war, but we are not afraid of one.”

Despite ongoing tensions, China’s latest trade data showed resilience: exports rose at their fastest pace in over a year, underscoring Beijing’s growing insulation from U.S. pressure. “If the U.S. insists on going the wrong way,” the ministry warned, “China will take resolute measures to protect its legitimate rights and interests.”

---

---