China Warns of Countermeasures Against Countries Striking Trade Deals with U.S. at its Expense

What Happened?

China has warned other countries against striking a broader economic deal with the U.S. at its expense after accusing Washington of abusing tariffs.

Beijing's Commerce Ministry announced Monday it would 'resolutely take countermeasures', amid reports that the U.S. plans to use tariff negotiations to impose new barriers on China trade.

Those remarks followed a recent editorial in the state-controlled China Daily, which had warned the European Union against trying to 'appease' the U.S.

Tariff negotiations are reportedly taking place after the Trump administration met with a Japanese delegation last week and South Korea is set to happen this week.

President Donald Trump paused the sweeping tariffs announced on April 2, except those on China.

It keeps the world's two largest economies at odds which threatens to drag in other nations.

Why it Matters

China had hiked its levies on U.S. imports to 125% after the Trump administration imposed a minimum tariff of 145% on Chinese goods.

China’s Ministry of Commerce dismissed Trump's measures as 'a joke' and stated his approach was a 'numbers game which has no practical significance on economics.'

As of recent, the ministry said it's determined and capable of safeguarding its own rights and interests and is willing to strengthen solidarity with all parties.

Trump authorized a 90-day pause and a substantially lowered reciprocal tariff excluding China 'based on the lack of respect that China has shown to the world’s markets.'

He has also accused China of allowing a flow of synthetic drugs to enter the U.S.

China-based analyst, Bo Zhengyuan, told Reuters, 'The fact is, nobody wants to pick a side' as China and the U.S. go tick-for-tack with higher levies.

More than 75 countries have called U.S. representatives to negotiate trade solutions with the Trump administration.

China is attempting to compel Washington to retreat, despite the U.S. already receiving 'serious' trade deal offers with roughly 20 nations.

The European Union, which Spain is a member of, reportedly pursues more trade with China through a fair and reasonable global governance system.

But Spain's Prime Minister, Pedro Sánchez, stated, 'Trade wars are not good, nobody wins. And this is clear, the world needs both China and the United States to talk.'

How it Affects You

The ongoing battle between both countries threatens to rip apart trade ties between the world’s two largest economies.

Both countries continue to show strong displays of retaliation as market disruption has been impacted globally.

Trump still aims to address the U.S. goods trade deficit with China, which was $295.4 billion in 2024.

Experts project, that market struggles Trump has viewed as 'transition problems' have increased the likelihood of a 2025 recession.

It's a concern that everyday consumers and small business owners closely weigh in on as China and the U.S. appear far from a resolution.