Escalating US-China Trade Tensions: Beijing Urges Washington to "Respect Facts" Amid 100% Tariff Threat

US President Donald Trump and Chinese President Xi Jinping

China has called on the United States to adhere to international trade regulations and cease actions that damage Chinese interests, following President Trump's threat to implement a 100 percent tariff on Chinese products.

Lin Jian, spokesperson for China's Foreign Ministry, stated: "We urge the US and relevant companies to respect facts and multilateral trade rules, follow market economy principles and fair competition, rectify incorrect approaches promptly, and stop undermining China's interests."

The statement comes after China's Ministry of Commerce announced sanctions on Tuesday against five US-based subsidiaries of South Korea's Hanwha Ocean Co. This action was taken in response to the US Section 301 investigation targeting China's maritime, logistics, and shipbuilding sectors, according to Global Times.

The Order No. 6 of 2025, issued by the Ministry's Bureau of Security and Control, was implemented in accordance with China's Anti-Foreign Sanctions Law. The ministry declared that US Section 301 measures against China's maritime and shipbuilding industries "violate international law and basic international relations norms, seriously harming legitimate rights of Chinese enterprises."

Chinese state media identified the sanctioned subsidiaries as Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.

China's Transport Ministry has launched an investigation into how the US Section 301 investigation affects the security and development of its shipping and shipbuilding industries, along with related supply chains, Xinhua reported.

The Foreign Ministry's statement comes amid intensifying trade tensions between the two economic powers, following new trade restrictions announced by both countries in a significant escalation of their economic dispute.

China introduced new fees on US vessels arriving at Chinese ports, effective October 14. The Chinese Transport Ministry stated these fees would begin at 400 yuan (approximately USD 56) per net ton, with annual increases over the next three years.

Beijing explained this was a direct response to Washington's similar charges on Chinese vessels entering US ports, describing the American action as violating WTO rules and the bilateral maritime transport agreement.

Earlier, President Trump announced the US would impose an additional 100 percent tariff on Chinese imports beginning November 1, bringing total duties on Chinese goods to 130 percent.

On Truth Social, Trump wrote: "In response to China's export control on rare earths and related items, the United States will impose a tariff of 100 percent on China, over and above any tariff that they are currently paying."

He added that the US would strengthen export controls on key software and technology, accusing Beijing of taking a "hostile" stance in trade relations.

China's Ministry of Commerce responded that "willful threats of high tariffs are not the right approach to relations with China," adding that while China does not want a trade war, it is "not afraid of one either."

Beijing defended its recent export controls on rare earth materials as a legitimate measure to improve its export management system and protect national security. It accused the US of "double standards" and "misusing export control measures" against Chinese companies.

"The US cannot seek dialogue while simultaneously threatening new restrictive measures," the ministry stated, urging Washington to resolve disagreements through mutual respect and constructive discussion.

Since the China-US trade talks in Madrid last month, Beijing claims the US has expanded restrictions by adding more Chinese companies to the Entity List and extending Section 301 measures to the shipbuilding industry.

China warned that these actions have "seriously damaged" its interests and undermined the atmosphere for productive trade discussions. It called on the US to "correct its wrong practices" and "manage differences through dialogue" to ensure stable and sustainable bilateral relations.