China issues warning against trade deals with the U.S. at its expense

Monday 21 April 2025 - 10:09

On April 21, China accused the U.S. of misusing tariffs and cautioned countries against entering trade deals with the United States that would harm China's interests. This statement escalates tensions in the ongoing trade war between the two largest global economies. China's Ministry of Commerce asserted that Beijing would oppose any agreement made at its expense and would take reciprocal countermeasures.

The warning followed a Bloomberg report indicating that the Trump administration is preparing to pressure nations seeking tariff reductions or exemptions from the U.S., encouraging them to reduce trade with China. It also suggested the possibility of imposing financial sanctions. President Trump had recently paused broad tariffs on multiple countries except China, which faced the steepest tariff hikes.

The U.S. has imposed tariffs on Chinese imports as high as 145%, and China retaliated with 125% duties on U.S. products. Despite this, China signaled it would not increase tariffs further. The Chinese Commerce Ministry criticized the U.S. for imposing tariffs under the guise of “equivalence” and forcing other countries into “reciprocal tariff” negotiations.

Experts suggest that countries heavily dependent on China for investment, technology, and industrial development might resist U.S. demands. Southeast Asian nations, in particular, are less likely to support U.S. actions due to their deep ties with China.

This week, Beijing will convene a meeting at the United Nations Security Council to accuse the U.S. of bullying and undermining global peace efforts by weaponizing tariffs. Meanwhile, some countries, like Japan and Indonesia, are in ongoing tariff discussions with the U.S., while China’s President Xi Jinping has been strengthening regional ties in Southeast Asia.

The trade war's impact on financial markets continues to be a concern, with investors wary of economic downturns. The Trump administration has also targeted China’s advancements in semiconductor technologies and shipbuilding, adding pressure to the trade relationship.

For Southeast Asian nations caught between the two economic giants, the stakes are high. The ASEAN region has extensive trade relations with both China and the U.S. In the first quarter of 2025, trade with China amounted to $234 billion, while trade with the U.S. reached $476.8 billion in 2024. With tariffs affecting trade-dependent economies, ASEAN's position in the ongoing trade conflict remains critical.