China has issued a strong warning to countries considering trade agreements with the U.S. that would harm Beijing, promising 'resolute and reciprocal countermeasures.' This statement, issued in April 2025, responds to reports that President Trump plans to offer tariff exemptions to nations that restrict their trade with China. The measure aims to economically isolate Beijing amid a trade war that already sees U.S. tariffs at 104% and Chinese retaliations at 125%. This ultimatum intensifies global tensions. Countries in Asia and Latin America, dependent on both China and the U.S., face a dilemma: aligning with Washington could unleash Chinese reprisals, such as restrictions on key exports or investments. For example, China could limit access to its rare earths, vital for technology. Global markets are already feeling the impact: the MSCI World index fell by 2% following the warning, and currencies like the yuan are weakening. The IMF warns that this trade fragmentation could reduce global GDP by 1.5%. #USChinaTensions