China has issued a stern warning, indicating it will retaliate against nations that engage in agreements with the United States that undermine Beijing’s interests. This development comes as the ongoing trade war between the two largest economies in the world risks involving additional countries.
Recent reports indicate that the United States is poised to exert pressure on governments to limit trade with China, offering exemptions to US tariffs as an incentive.
The Trump administration has initiated discussions with trading partners regarding tariffs, which was highlighted by a visit from a Japanese delegation to Washington last week. At the same time, South Korea is poised to commence negotiations this week.
Since his return to the White House in January, Trump has enacted significant tariffs on Chinese imports, and other nations have also faced increased levies on their products.
A spokesperson for the Chinese Commerce Ministry stated, “Appeasement cannot bring peace, and compromise cannot earn one respect.”
China has expressed strong opposition to any agreements that compromise its interests. Should this occur, China is expected to reject it and implement decisive countermeasures firmly.
The comments resonated with an editorial published last week in the state-run China Daily, cautioning the European Union against efforts to “appease” the United States.
Following recent reports, it has been revealed that the United States intends to use tariff negotiations to compel numerous countries to establish new trade barriers against China.
The BBC has contacted the US Treasury Department and the US Trade Representative for their comments regarding the reports.
Trump has claimed that over 70 countries have initiated contact to begin negotiations following the announcement of the tariffs.
“Approximately 20% of Japan’s profitability is derived from the United States, while around 15% originates from the People’s Republic of China,” stated Jesper Koll, a Japanese online trading platform operator Monex Group representative.
“Japan is seeking to avoid a scenario where it must choose between the United States and the People’s Republic of China.”
Last week, Japan initiated discussions with the United States as Ryosei Akazawa, the nation’s leading tariff negotiator, engaged in talks with the President in Washington DC.
In a significant development, South Korea’s acting president, Han Duck-soo, announced that the nation will initiate trade discussions with the United States later this week.
This week, US Vice President JD Vance is set to meet with India’s Prime Minister Narendra Modi during his visit to the country. India is confronted with a significant tariff rate of 26% should it fail to reach a trade agreement with the Trump administration.
In a statement last week, Vance indicated a “good chance” of reaching a trade deal with the UK.
“We are indeed putting in significant effort alongside Keir Starmer’s government,” he remarked during an interview with the UnHerd website.
Following Trump’s inauguration, a series of tariff announcements emerged.
The President of the United States has stated that implementing import taxes is expected to motivate consumers to purchase more domestically produced goods, enhance tax revenue, and stimulate significant investments within the nation.
Critics argue that returning manufacturing to the United States is fraught with complications and may span decades, suggesting that the economy could face significant challenges during this transition period.
Trump has reversed course on several of his previous statements.
In a significant move, just hours after implementing steep levies on numerous trading partners, the administration declared a 90-day suspension of these tariffs for all nations except China. This decision comes amid increasing resistance from political figures and market analysts.
President Trump has enacted tariffs on goods imported from China, reaching as high as 145%. Countries worldwide are currently confronted with a comprehensive US tariff set at 10%, which will remain in effect until July.
Last week, the administration announced that implementing new tariffs, combined with existing ones, could result in levies on certain Chinese goods soaring to as high as 245%.
In a significant escalation of trade tensions, China has imposed a staggering 125% tax on American products, declaring its commitment to “fight to the end.”
Earlier this month, the trade war between the world’s two largest economies reverberated across global financial markets, causing significant turmoil.
