Beijing has maintained its stance in the escalating U.S-China trade war warning countries against aligning with Washington in tariff-driven economic deals that does not serve Chinese interests. China’s ministry of commerce has issued a stern statement, accusing the U.S of ‘abusing tariffs’ and pressuring nations to stop or reduce trade with China in exchange for tariff exemptions. The ministry vowed ‘resolute and reciprocal countermeasures’ against any country compromising Beijing’s interests.
The U.S, under President Donald Trump, has imposed tariffs of up to 145% on Chinese imports with Beijing responding with 125% duties on U.S goods. While Trump paused reciprocal tariffs on most nations for 90 days, China remained the primary target, with reports of a potential hike to 245% on Chinese imports in response to Beijing’s export restrictions on rare earth metals. This tit-for-tat tariff exchange froze bilateral trade, with both sides showing no inclination for de-escalation.
China’s warnings come amid reports that the Trump administration is leveraging tariff negotiations to isolate Beijing, pressuring allies like Japan, Taiwan, and South Korea to limit trade with China. Japan and South Korea had previously tied up with China in order to fight US tariffs. Chinese Foreign Minister Wang Yi urged the UK and EU to uphold multilateral trade systems, while Premier Li Qiang called on Japan for a coordinated response. Beijing is also rallying support in Southeast Asia, with President Xi Jinping promoting China as a defender of global trade during recent visits to Vietnam, Malaysia, and Cambodia.
The International Monetary Fund downgraded global growth forecasts, citing high U.S-China tariffs and policy uncertainty. Companies like 3M and Kimberly-Clark have cut profit forecasts due to rising costs, while homebuilders warn of inflated prices.
