Markets were on alert late Sunday as investors braced for the reopening of U.S. stock futures after a volatile week that saw President Donald Trump’s tariff threats wipe out $2 trillion in equity value.
In a notable shift in tone, Trump on Sunday offered what appeared to be conciliatory words toward Beijing. “Don’t worry about China, it will all be fine!” he wrote on social media, adding that President Xi Jinping had “a bad moment.” He continued, “The U.S.A. wants to help China, not hurt it.”
The remarks came just two days after Trump’s shock announcement of a 100% tariff on all Chinese goods starting 1 November, coupled with export controls on critical software. That declaration on Friday triggered a sharp selloff across global markets, with the Dow Jones falling 2.7%, the S&P 500 down 2.4%, and the Nasdaq Composite losing 2.5%.
China’s Ministry of Commerce struck back Sunday, accusing Washington of “textbook double standards” and warning that Beijing “does not want a trade war, but is not afraid of one.” The ministry defended its own export curbs on rare earth minerals, a key input in electronics and renewable energy, as “legitimate” under international law, arguing that the measures were aimed at strengthening its export control system amid a turbulent security environment.
The U.S. has accused China of weaponising its dominance in rare earths, which account for about 70% of global supply. Washington says Beijing’s new restrictions could disrupt technology and defence supply chains.
Vice President JD Vance urged Beijing to “choose the path of reason,” while U.S. Trade Representative Jamison Greer said China’s actions had “undermined progress” in ongoing trade talks. Beijing’s new port fees on American ships and tighter licensing rules for rare earth exports added to tensions.
With both sides hardening positions but leaving the door open for dialogue, attention now turns to whether next month’s planned APEC summit in South Korea will still bring Trump and Xi face-to-face, or mark the start of a deeper economic confrontation.