Supply Chain Report – 10/13/2025
China has reiterated its commitment to safeguarding its economic interests following renewed tariff threats from former U.S. President Donald Trump, who urged Beijing to take a less confrontational approach amid rising trade tensions.
Trump wrote on social media, “Don’t worry about China, it will all be fine! 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.”
The comments come as financial markets react to uncertainty surrounding new U.S. tariff measures. On Friday, the S&P 500 index fell 2.7%, marking its steepest one-day drop in six months, following Trump’s pledge to impose additional 100% tariffs on imports from China.
The escalating exchanges have raised concerns about the stability of trade negotiations between Washington and Beijing, with analysts warning that the tensions could derail plans for an upcoming meeting between Trump and Chinese President Xi Jinping.
U.S. Vice President JD Vance defended the tariff decision, saying it was necessary to strengthen domestic industries and reduce dependence on foreign suppliers. “It’s going to be a delicate process, depending on how China responds,” Vance said in a televised interview. “The president is ready to negotiate, but he will also defend America’s economic interests.”
In response, China’s Ministry of Commerce issued a statement calling for dialogue and restraint. “Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” a ministry spokesperson said. “If the U.S. side insists on its current course, China will take corresponding measures to safeguard its legitimate rights and interests.”
Beijing also criticized recent U.S. actions that expanded export controls and imposed new port fees on Chinese ships. In response, China announced it would implement similar charges on U.S. vessels.
Regarding rare earth exports, the Chinese Commerce Ministry clarified that export licenses would be approved for legitimate civilian uses, emphasizing that the recent measures were aimed at ensuring responsible resource management. China currently accounts for nearly 70% of the world’s rare earth mining and about 90% of global processing.
The rare earth materials, vital for industries ranging from electric vehicles to advanced electronics, have become a key factor in the ongoing trade discussions. China maintained that its policies were consistent with international standards and were not intended to disrupt global supply chains.
Both countries have accused each other of violating the spirit of past trade truces through new restrictions. Despite these tensions, Chinese officials expressed openness to continued dialogue to address trade imbalances and maintain global market stability.
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