Washington: US President Donald Trump expressed confidence on Sunday that the ongoing trade tensions with China will be settled, sending a calming message just days after suggesting the imposition of 100% tariffs on Chinese imports. "Don't worry about China, it will all be fine," Trump communicated via his social media platform, Truth Social.

According to Anadolu Agency, Trump described Chinese President Xi Jinping's decision to enforce rare earth export controls as a temporary miscalculation. He emphasized that President Xi, whom he referred to as "highly respected," experienced a misjudgment and noted that neither leader desires economic downturns for their respective countries. Trump further stated, "The U.S.A. wants to help China, not hurt it."

Last Thursday, China broadened its rare earth export restrictions by implementing limitations on processing and manufacturing technologies and barring collaboration with foreign enterprises without prior governmental approval. In response, Trump threatened on Friday to enforce 100% tariffs on Chinese products and limit critical software exports, effective November 1, in addition to existing tariffs.

China responded on Sunday to Trump's threats by asserting its lack of fear concerning a potential trade war. A spokesperson from China's Commerce Ministry reiterated the country's consistent stance on trade conflicts, stating, "We do not want it, but we are not afraid of it."

The announcement of potential new tariffs led to a sharp decline in US stock markets on Friday, adding to the market turmoil initiated by Trump's announcement of new global tariffs in April. Market activity in the US is paused on Monday due to the Columbus Day holiday.