Trump says 'it will all be fine' in trade dispute with China

US President Donald Trump said Sunday that trade tensions with China will be resolved, posting a reassuring message days after threatening 100% tariffs.

"Don't worry about China, it will all be fine," Trump wrote on his social media platform Truth Social.

Trump characterized Chinese President Xi Jinping's rare earth export controls as a temporary misstep. "Highly respected President Xi just had a bad moment. He doesn't want depression for his country, and neither do I," he said.

"The U.S.A. wants to help China, not hurt it," Trump added.

China expanded rare earth export restrictions Thursday, imposing limits on processing and manufacturing technologies and prohibiting cooperation with foreign companies without prior government authorization.

Trump on Friday threatened to impose 100% tariffs on Chinese goods and restrict critical software exports after Beijing's move. He said the tariffs would take effect on Nov. 1 "over and above any tariff that they are currently paying."

China said Sunday it is "not afraid of" a trade war after Trump's threats. China's position on a trade war is consistent, a Commerce Ministry spokesperson said, namely: "We do not want it, but we are not afraid of it."

The threat of new tariffs sent US stock markets plunging on Friday, following upheaval in the markets from Trump's announcement in April of new worldwide tariffs.

US financial markets are closed Monday for the Columbus Day holiday.