Trump declared war on China and threatened to unite allies to increase taxes on China by 500%. China fought back tough: to fight to the end.
On October 16, 2025, U.S. President Donald Trump announced in the White House the full escalation of the U.S.-China trade war and vowed to join allies to impose tariffs of up to 500% on Chinese goods. This news quickly sparked global public opinion and also caused international markets to fall into turmoil. At the same time, the Chinese Embassy in the U.S. with a strong response showed the position: "To talk, the door open; to fight, to accompany the end!"
Trump's latest move can be described as aggressive. He not only plans to comprehensively increase taxes on China goods, but also threatens to cut off the supply of key software, aircraft parts and other core technologies, and considers delisted some China companies from the New York Stock Exchange. The U.S. Treasury Secretary even issued a statement asking China to choose between negotiation and all-out confrontation, otherwise it will bear the "fire of hell" of the United States. In addition, the United States also plans to impose a 500% tariff on China's purchase of Russian oil, strengthen control over strategic industries such as rare earths and semiconductors, and form a "rare earth industry alliance" in an attempt to weaken China's dominant position in the global rare earth supply chain.
However, this kind of seemingly grand, in fact, many difficulties. The EU relies deeply on the China market, and Germany and France attach special importance to trade relations with China. Although India and Australia cooperate with the United States in the field of rare earths, their interests are not completely consistent with those of the United States. Japan and South Korea also have huge market demand for China in the semiconductor field. The United States 'united front may seem tough on the surface, but it is actually difficult to maintain for a long time.
More importantly, the U.S. tariff policy may hurt itself first. According to predictions, this tariff policy will lead to an average annual expenditure of about $1,200 in U.S. households, especially in the fields of electronics, furniture, clothing, etc. At the same time, U.S. companies will also face higher production costs and further weaken their competitiveness. The U.S. Farmers’ Federation noted that China is the main buyer of U.S. soybeans, and in 2024 the U.S. exported 27 million tons of soybeans to China. Once China turns to Brazil, Argentina and other countries, U.S. agriculture will face a serious shock.
China, on the other hand, showed coolness and firmness. Rare-earth export controls became a powerful weapon for China's counterattack. More than 85% of the world's rare-earth processing capacity is concentrated in China, while the U.S. West has rich rare-earth mining deposits, but lacks efficient processing technology. China's rare-earth exports continue to decline in 2024, directly leading to the rise in US-European rare-earth prices. In addition, China-Russia energy cooperation further weakened U.S. financial hegemony. The two countries have long used their own currency for energy settlement, bypassing the dollar control. China has established a diversified global supply chain through cooperation with Brazil, Argentina and other countries, ensuring a stable supply of agricultural
Although the United States attempts to unite allies against China, its strategy faces internal and external contradictions. China's response demonstrates strategic patience and global advantages. Through rare earth bombs, energy cooperation and supply chain diversification, it has not only stabilized its own economy, but also played a key role in reshaping the international order. The smoke of this trade war has already filled the air, but the final outcome is not determined solely by tariff policies. It is hoped that both sides can return to rationality, resolve differences through dialogue, and inject new impetus into the stability and development of the global economy.