China warned of retaliatory actions against countries that reach trade agreements with the United States at the expense of China's interests, as other nations engage in the trade war between the world's two largest economies.
In its latest response to rising U.S. tariffs, the Chinese Ministry of Commerce stated that Beijing respects the efforts of all parties to resolve their trade disputes with the United States through equal consultation; however, China will not accept any U.S.-led trade agreements that harm its interests and will respond 'firmly and reciprocally with countermeasures' to protect its rights and interests.
In its statement, China described U.S. tariffs as 'unilateral bullying' in international trade, adding that 'if international trade devolves into a jungle law where the strong exploit the weak, all countries will become victims.'
Imposing secondary tariffs on China's allies
Last week, reports emerged that the Trump administration plans to pressure U.S. trading partners to limit deals with China in ongoing tariff negotiations, and countries with close trading relations with China may face what are called secondary tariffs.
Meanwhile, Chinese President Xi Jinping visited key trading partners in Southeast Asia last week, including Vietnam, Malaysia, and Cambodia, in his first foreign trip of the year.
Xinhua News Agency reported that the visit signaled China's renewed efforts to promote regional stability and prosperity, and its steadfast support for regional economic integration amid rising global protectionism and unilateralism.
Non-tariff trade tensions
It seems that the tariff war has peaked between the United States and China, as neither side has indicated any further increases, and so far, the United States has imposed tariffs of 145 percent on Chinese goods while suspending reciprocal tariffs on other countries.
China responded by imposing a 125 percent tariff on American goods, stating that it would 'ignore' any further increases, describing them as 'meaningless number games.'
Trump also indicated that it is unlikely that any further tariff increases will be imposed, citing concerns that additional measures could hinder trade between the two countries.
However, both sides have intensified their trade tensions through non-tariff measures, with China recently imposing restrictions on the export of a wide range of critical metals, specifically targeting the United States.
A few days later, Trump signed an executive order to investigate imports of critical metals, stating: 'Critical metals, including rare earth elements, in processed forms, are essential raw materials and vital production inputs necessary for economic and national security.'
Heightening the escalation, the Trump administration announced tariffs on Chinese ships docked at U.S. ports last Friday, a decision revealed by the Office of the United States Trade Representative following a year-long investigation that began during the Biden administration.
While President Trump has repeatedly indicated that China will reach out to the United States to finalize a trade deal, there is no clear indication from Beijing that an agreement is imminent.
The euro and gold rise as demand for safe havens increases.
Trade tensions between the United States and China continued to destabilize global markets during Monday's Asian trading session, and while most Western stock exchanges remained closed for the Easter holiday, risk aversion again dominated market sentiment.
Safe-haven asset prices, such as gold and the euro, surged sharply; at the same time, the U.S. dollar continued to decline, and U.S. stock futures extended their losses.
Futures contracts for gold on the Comex rose by 1.8 percent to $3,389 an ounce, while the spot price of gold increased by 1.4 percent to $3,376 an ounce, marking its highest levels ever.
The euro surpassed the $1.50 level for the first time since November 2021, while other safe-haven currencies, including the Japanese yen and Swiss franc, also rose significantly against the dollar.