Dhaka, Oct. 12 -- China on Sunday reaffirmed that it would not yield to U.S. threats of a 100% tariff hike, urging Washington to resolve trade disputes through dialogue rather than coercion. "China's position remains consistent," the Commerce Ministry said in an online statement. "We do not seek a tariff war, but we are not afraid of one."

The warning came two days after President Donald Trump threatened to double tariffs on Chinese imports starting November 1, in response to Beijing's new restrictions on exporting rare earth minerals, which are essential for both consumer and military products.

The escalating tensions could undermine a potential Trump-Xi meeting and end the fragile truce in a trade war that saw tariffs briefly exceed 1...