China has escalated tensions in its ongoing trade dispute with the United States, warning nations against negotiating economic deals that could undermine Beijing’s interests. The Chinese government has stated that it will strongly oppose any agreement made at its expense and will retaliate with countermeasures. This warning follows a report from Bloomberg, which revealed that the Trump administration is preparing to exert pressure on countries seeking tariff reductions or exemptions in exchange for reducing trade with China.
China’s Response to US Trade Strategy:
China’s Ministry of Foreign Affairs issued a stern statement on Monday, accusing the United States of misusing tariffs and employing them as a tool for political leverage. The statement emphasized that Beijing would not tolerate any efforts to exclude China from global trade agreements. The ministry reacted strongly to news that the Trump administration might impose financial penalties on nations that continue to engage in trade with China without reducing it.
This latest development comes after President Donald Trump’s decision on April 2nd to halt broad tariffs on several countries, except for China. The tariffs, which have been a hallmark of the trade war, have added significant strain to the global economy.
Trade Battle Intensifies:
The trade tensions between China and the US have grown more intense in recent months. Following a 145% tariff increase on Chinese imports, China retaliated by imposing a 125% tariff on US goods. While Beijing indicated that it would not further escalate its tariffs, the broader trade conflict continues to affect countries caught in the middle.
The Chinese Ministry spokeswoman accused the US of applying unfair tariffs across the board, claiming that Washington’s actions were unjust and aimed at forcing other nations to negotiate tariffs on a reciprocal basis.
China’s International Appeal:
In a bid to rally international support, China has called for an informal meeting of the UN Security Council this week. The Chinese government intends to accuse the US of weaponizing tariffs, which it argues is undermining global peace and development efforts. Beijing has stressed that such trade tactics threaten to destabilize the global economic order and harm multilateral trade agreements.
Global Economic Impact:
Financial markets have been shaken by the uncertainty surrounding US trade policies. Investors are concerned that the escalating trade dispute could trigger a global recession. The global economy is increasingly dependent on smooth trade flows, and disruptions could have far-reaching consequences.
Earlier this month, US Trade Representative Jamieson Greer confirmed that nearly 50 nations had approached his office to discuss President Trump’s tariff hikes. Many of these countries are seeking to avoid the punitive measures that have been imposed on their trade with the US.
China’s Diplomatic Efforts:
As the trade battle with the US continues, Chinese President Xi Jinping has made efforts to strengthen China’s regional ties. Last week, he visited three Southeast Asian nations, urging them to resist what he called “unilateral intimidation” from the US. China is working to expand its network of trade partners, signaling its commitment to maintaining strong economic relationships in the face of growing trade tensions.
ASEAN Caught in the Crossfire:
The stakes are particularly high for Southeast Asian countries, which have significant trade relationships with both China and the United States. ASEAN (Association of Southeast Asian Nations) is China’s largest trading partner, with trade between the two totaling $234 billion in the first quarter of 2025. ASEAN accounts for more than 16% of China’s total foreign trade, according to the Chinese customs agency.
Meanwhile, the United States remains the fourth-largest trading partner of ASEAN, with an estimated trade value of $476.8 billion in 2024. Southeast Asian nations are now navigating the difficult task of managing their relationships with both economic giants while trying to avoid being caught in the crossfire of the ongoing tariff battle.
