China’s Commerce Ministry on Sunday signaled that it would not back down in the face of a 100% tariff threat from President Donald Trump, urging the U.S. to resolve differences through negotiations instead of threats.

The ministry issued a statement saying China has a “consistent position” on the tariff issue, that “we do not want a tariff war but we are not afraid of one.”

“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the Commerce Ministry said.

It also called for addressing any concerns through dialogue.

The response came two days after Trump threatened to jack up the tax on imports from China by Nov. 1 in response to new Chinese restrictions on the export of rare earths, a key ingredient for many consumer and military products.

The back and forth threatens to derail a possible meeting between Trump and Chinese leader Xi Jinping and end a truce in a tariff war in which new tariffs from both sides briefly topped 100% in April.

Trump has raised taxes on imports from many U.S. trading partners this year, seeking to win concessions in return for tariff reductions.

China has been one of the few countries that hasn't backed down, relying on its economic clout.

Both sides accuse the other of violating the spirit of the truce by imposing new restrictions on trade.

Trump said China is “becoming very hostile” and that it’s holding the world captive by restricting access to rare earth metals and magnets.

China’s new regulations require foreign companies to get special approval to export items that contain even small traces of rare earths elements sourced from China.

These critical minerals are needed in a broad range of products, from jet engines, radar systems and electric vehicles to consumer electronics including laptops and phones.

China accounts for nearly 70% of the world’s rare earths mining and controls roughly 90% of global rare earths processing.

Access to the material is a key point of contention in trade talks between Washington and Beijing.

The ministry statement said the country had conducted a “thorough assessment” of the measures and is confident that it would inflict “very limited” impact on the global supply chain.

Export licenses would be granted for legitimate civilian uses, noting that the minerals also have military applications, the ministry said.

“If the U.S. side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests,” it added.