China has issued a stern warning to countries considering trade agreements with the United States that come at its expense, signalling it will retaliate against any such deals that curtail trade with China. This declaration comes amid escalating trade tensions between the world’s two largest economies, the United States and China.
The Chinese Ministry of Commerce made the announcement on Monday through a statement attributed to an unnamed spokesperson, translated by the Associated Press. The ministry condemned what it described as economic bullying by the Trump administration, which has been imposing tariffs on a wide array of imports. “China firmly opposes any party reaching a deal at the expense of China’s interests,” the statement declared. “If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner. China is determined and capable of safeguarding its own rights and interests.”
The warning follows media reports suggesting that the Trump administration intends to pressure nations into reducing tariffs through trade negotiations that would effectively discourage them from engaging in trade with China. China criticised this approach, stating, “Appeasement cannot bring peace, and compromise cannot win respect. For one’s own temporary selfish interests, sacrificing the interests of others in exchange for so-called exemptions is like seeking the skin from a tiger. It will ultimately only fail on both ends and harm others without benefiting themselves.”
This development comes in the wake of a significant escalation in the trade war, with President Donald Trump increasing tariffs on Chinese imports to 145 percent, prompting China to impose retaliatory duties of 125 percent on U.S.-made goods.
The Chinese ministry accused the United States of abusing tariffs against all trading partners under the guise of “equivalence” and forcing them into “reciprocal tariffs” negotiations. Despite this tension, China has indicated openness to talks with the U.S., although no meetings have been scheduled.
Adding to the complex trade environment, U.S. Vice President JD Vance met with Indian Prime Minister Narendra Modi, during which both parties welcomed “significant progress” in negotiations for a U.S.-India Bilateral Trade Agreement. The discussions culminated in the finalisation of the terms of reference for ongoing negotiations, setting a roadmap to explore shared economic objectives.
Meanwhile, on the domestic front in the United States, major retailers including Walmart, Home Depot, Lowe's, and Target met with President Trump to discuss the impact of widespread tariffs on their businesses. These retailers, particularly Walmart and Target, rely heavily on imports and are concerned about the expected increase in consumer goods prices resulting from tariff hikes.
The White House meeting, confirmed by an anonymous official to Reuters, reflects growing unease within the U.S. retail sector about the economic consequences of the tariffs. The Trump administration’s inconsistent tariff policies and temporary pauses have unsettled exporters, alarmed importers, disrupted shipments, and raised concerns about potential harm to the global economy.
These events mark a critical moment in trade relations, with ongoing negotiations and strategic moves from the world's leading economies shaping international commerce.
Source: Noah Wire Services