China has cautioned other nations against making trade deals with the United States that could harm Chinese interests, adding new tension to the growing global tariff dispute.
The warning comes as Washington pushes forward with aggressive trade measures, leaving many countries caught in the middle.
Beijing’s Ministry of Commerce issued a statement condemning what it described as unfair use of tariffs by the United States. The ministry criticized U.S. policies that offer favorable trade terms to countries that reduce their dealings with China, threatening “reciprocal” action against any such arrangements. China made it clear that it will not sit quietly while others gain by limiting trade with one of the world’s largest economies.
Reports from Bloomberg suggest that the U.S., under President Donald Trump, is preparing to offer tariff exemptions to some countries on the condition they cut back on Chinese imports. China sees this as an effort to isolate it economically and has responded with heavy tariffs of its own. Both nations are now locked in a tariff battle with import taxes on certain goods rising above 100 percent, pushing businesses and governments into a state of economic uncertainty.
President Trump’s latest tariff pause excluded China, sparking sharp criticism from Beijing. China, in turn, accused Washington of using trade talks as a political weapon. The Chinese government pledged to protect its economic position and warned other nations not to sacrifice their relationship with China for short-term U.S. benefits.
Southeast Asian countries, many of which rely on Chinese investment and trade, are seen as unlikely to fully align with U.S. demands. Economic analysts have pointed out that regional players such as Indonesia, Malaysia, and Thailand have strong infrastructure and financial ties with China, making it difficult to turn away from Beijing without facing consequences.
In a sign of diplomatic escalation, China plans to hold a United Nations Security Council meeting to criticize the U.S. for using trade policy as a tool of pressure. This effort is meant to draw global attention to what China sees as economic coercion.
Meanwhile, U.S. officials confirmed that around 50 countries have reached out to discuss the tariffs. Talks are already underway with nations like Japan and Indonesia, both exploring ways to meet U.S. requests without severely damaging ties with China.
Despite the sharp words and growing tension, financial markets have remained relatively steady. Still, many investors are cautious about where the situation could lead, particularly given China’s recent economic challenges and the ongoing restrictions on its technology exports by the U.S.
In response to the growing divide, Chinese President Xi Jinping has been actively visiting Southeast Asia. During these visits, he urged regional leaders to reject what he called “unilateral bullying” and instead build stronger partnerships with China. Trade figures show ASEAN is now China’s top trading partner, with their trade reaching $234 billion in early 2025. Meanwhile, U.S.-ASEAN trade hit $477 billion last year, making the region a major focus in the global supply chain standoff.
As Southeast Asian ministers continue trade talks in the U.S., they face a complex challenge—balancing economic ties with both superpowers while trying to stay neutral in a fast-deepening trade war.