China vows countermeasures against new tariff threat in statement

Trade Relations & Tariffs - China is defending its expanded rare earth curbs in response to US restrictions and sanctions, viewing them as reciprocal measures [2][3] - China pledges to take corresponding measures against President Trump's threat of 100% tariffs [3] - The Chinese Ministry indicates that the rare earth curbs do not equate to a ban, despite speculation about their timing amidst US-China negotiations [4] - There are two lines of thought regarding China's actions: using rare earths as leverage for concessions or a re-escalation due to poor negotiation progress [5] Rare Earth Market & Influence - China dominates the rare earth industry, holding 70% of the rare earth magnet market and 90% of finishing or processing [7] - China's influence extends beyond rare earths, with the country strategically targeting issues important to President Trump politically [8][9] Economic Impact & Trade Shift - China is attempting to reduce its reliance on the United States, with direct shipments to the US dropping to 10% of China's total exports [9] - Soybean imports into China have hit a record, with none coming from the United States, impacting US farmers [11]