Beijing has issued a stern warning to countries engaging in trade agreements with the United States that may harm China’s interests. China’s Ministry of Commerce condemned actions by the Trump administration, which had pressured nations to sideline China during ongoing trade negotiations. Beijing vowed strong countermeasures, emphasizing that it would not tolerate any deals that undermine its economy.
China’s Strong Response to US Pressure
Officials in China expressed their disapproval of the Trump administration’s tactics, accusing the US of attempting to disrupt global trade. The Chinese government described these actions as “unilateral bullying,” warning that such behavior could destabilize the global economic order. According to Beijing, these tactics force countries to choose sides, which risks triggering a return to the “law of the jungle,” where stronger nations exploit weaker ones.
Beijing has made it clear that it will not stand idly by while other nations seek to diminish its global position. The Chinese government reaffirmed its commitment to defending national interests with firm, reciprocal actions if necessary.
Trade Tensions Escalate as Beijing Targets Resources
Although the Trump administration paused the imposition of new tariffs, it maintained pressure through other measures. The United States kept a hefty 145% tariff on Chinese goods while halting increases on other countries. In response, China imposed its own tariffs of 125% on US products, dismissing the threat of further tariff hikes as symbolic.
China also took further steps by tightening its grip on key raw materials, particularly rare earths and other critical minerals. These resources are essential for high-tech industries and manufacturing, and China’s restrictions aimed at limiting US access to them sent a clear message: Beijing will protect its economic interests.
Trump Orders Investigation into Mineral Dependency
In retaliation, President Trump signed an executive order aimed at investigating the US’s dependency on foreign minerals. The order highlighted national security concerns tied to the reliance on imported industrial materials, particularly from countries like China.
As tensions over trade and resources escalated, the US also targeted Chinese-made ships, imposing fees on those docking at American ports. This move followed a year-long investigation into Chinese shipping practices. Despite these measures, the US administration insisted that China would eventually seek a deal, but officials in Beijing showed no signs of backing down.
Market Volatility as Investors Seek Safe Havens
The growing trade friction between the United States and China sent shockwaves through global financial markets. Investors responded by fleeing riskier assets, seeking refuge in safer options such as gold and the euro. During Asia’s Monday morning session, spot gold surged 1.4%, reaching an all-time high of $3,376 per ounce, while futures climbed 1.8% to $3,389.
The euro also gained strength, breaching the 1.50 mark against the US dollar for the first time since late 2021. Safe-haven currencies, such as the Japanese yen and Swiss franc, saw significant gains. Meanwhile, US stock futures continued to slide, reflecting growing concerns about the escalating trade war between the world’s two largest economies.
The volatility in financial markets highlights the broader fears among investors about the long-term effects of the ongoing trade conflict. With both nations locked in a standoff, the situation remains highly uncertain. Analysts are closely monitoring the developments, as any further escalation could have significant implications for global trade and economic stability.