China confirmed on Sunday that it will not back down in the face of President Donald Trump’s threat to impose 100% tariffs, calling on the United States to resolve disputes through dialogue instead of threats.

Trump responded by adopting a less confrontational approach without backing down from his demands, while his vice president appeared to warn Beijing against responding aggressively.

The Chinese Ministry of Commerce said in a statement: “China’s position is firm. We do not want a trade war, but we are not afraid of one.”

This was China’s first official comment on Trump’s threat to increase taxes on Chinese imports by November 1, in response to new restrictions Beijing imposed on the export of rare earth metals, which are essential for a wide range of consumer and military products.

Hours later, Trump used his platform “Truth Social” to send a message to Chinese President Xi Jinping.

The Republican president wrote: “Don’t worry about China, everything will be fine! Respected President Xi is going through a tough moment. He does not want a recession for his country, and neither do I. The United States wants to help China, not hurt it.”

Trump may have been considering the US financial markets ahead of the new workweek.

The stock market is scheduled to open on Monday, while bond markets will close for Columbus Day. The S&P 500 index fell by 2.7% on Friday, its worst day in about six months, following Trump’s tariff threat.