Reports indicate Washington intends to pressure countries seeking tariff reductions to curtail their trade volume with Beijing.
Beijing has cautioned countries contemplating reducing trade with China in exchange for tariff relief from the U.S., stating it will respond to any such actions.
According to media reports, the Trump administration plans to pressure other nations to limit trade with China, potentially through financial penalties, to secure more favorable trade terms.
China’s Commerce Ministry stated on Monday that it “firmly opposes any party reaching a deal at the expense of China’s interests,” adding that Beijing would “resolutely take countermeasures.”
The U.S.’s tariff dispute with Beijing is part of a broader campaign targeting numerous countries. While most tariff increases were suspended for 90 days to allow for trade negotiations, China was not included in this pause. The total tariff on Chinese goods has been increased to 145%.
“Appeasement will not bring peace, and compromise will not earn respect,” the ministry declared. “Seeking so-called exemptions by harming the interests of others for one’s own selfish and shortsighted gains is like negotiating with a tiger for its skin. In the end, it will only lead to a lose-lose situation.”
The Wall Street Journal reported last week, citing sources, that the Trump administration intends to leverage tariff negotiations to pressure U.S. trading partners into diminishing ties with China.
The alleged plan includes preventing Chinese goods from being routed through these countries, blocking Chinese companies from relocating to evade U.S. tariffs, and rejecting inexpensive Chinese industrial imports.
While Trump hasn’t explicitly said he would pressure countries to restrict trade with China, he has expressed openness to the idea.
“Maybe, yeah, maybe,” Trump told Fox News last week, when questioned about whether Latin American countries should be forced to choose between Chinese and U.S. investment. “They should do that.”
Since trade tensions with the U.S. escalated, China has been actively strengthening relationships with other nations, engaging with officials from the EU, Japan, and South Korea. President Xi Jinping recently visited Vietnam, Malaysia, and Cambodia, signing several bilateral cooperation agreements and reaffirming China’s dedication to free and open trade.
“The fact is, nobody wants to pick a side,” Bo Zhengyuan, a partner at Plenum, a China-based policy consultancy, told NBC News.
“If countries have high reliance on China in terms of investment, industrial infrastructure, technology know-how and consumption, I don’t think they’ll be buying into US demands. Many Southeast Asian countries belong to this category,” he added.
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