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Brinks Report > Blog > World > Trade War Heats Up: China Tells Nations to Back Off or Face Consequences
World

Trade War Heats Up: China Tells Nations to Back Off or Face Consequences

Dolon Mondal
Last updated: April 21, 2025 12:34 pm
Dolon Mondal
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China on Monday hit back at the United States, accusing it of misusing tariffs and warning other countries not to strike economic deals with Washington that could hurt Chinese interests. The sharp message comes amid a deepening trade war between the world’s two largest economies.

According to China’s Commerce Ministry, any deal made “at China’s expense” will be met with firm countermeasures. This follows a Bloomberg report suggesting the U.S. plans to pressure countries asking for tariff relief to reduce trade with China—or face monetary penalties.

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What does this mean for the average person?

If you’re wondering how this global power game hits your wallet, the answer is simple: rising costs. From electronics to groceries, higher tariffs on imports often mean higher prices for consumers. It’s like watching your paycheck shrink every time two countries bicker.

In early April, President Trump paused sweeping tariffs on most countries—except China. That move left China facing the harshest rates. U.S. tariffs on Chinese imports have now reached 145%. China fired back with retaliatory tariffs of up to 125% on American goods. Though China signaled it wouldn’t hike those rates further, it made clear it won’t sit quietly either.

Also Read Under Tariff Pressures, China’s Spending Surge Signals a Global Power Play

A war of words—and wallets

The ministry’s spokesperson accused the U.S. of abusing the concept of “reciprocity” by forcing countries into one-sided negotiations. China, the statement said, has both the will and ability to defend its trade interests.

Beijing’s rhetoric was backed by action. This week, it plans to hold an informal U.N. Security Council meeting to call out what it sees as U.S. economic bullying—accusing Washington of casting a shadow over global development with its tariff tactics.

Southeast Asia in the hot seat
While the U.S. is leaning on allies to pick a side, many countries in Southeast Asia aren’t thrilled about choosing. As Bo Zhenyuan, partner at Chinese policy consultancy Plenum, put it: “Nobody wants to pick a side.” Many nations in the region depend heavily on Chinese investment and industry—and walking away from that isn’t easy.

This matters because ASEAN (Association of Southeast Asian Nations) is China’s largest trading partner. Trade between China and ASEAN reached $234 billion in just the first quarter of 2025. Meanwhile, U.S.-ASEAN trade hit $476.8 billion last year, making Washington the bloc’s fourth-largest trade partner.

Caught in the middle, these nations risk damaging ties with one superpower just to please another.

Also Read China’s US envoy urges end to trade war, but warns Beijing ready to fight

From ports to processors: new fronts in the fight

This isn’t just about soybeans and steel anymore. The U.S. has been ramping up curbs on Chinese semiconductor development, citing national security. Last week, port fees were slapped on China-built ships to challenge its dominance in shipbuilding.

AI chip maker Nvidia expects $5.5 billion in losses due to export restrictions. That’s not pocket change—it’s a gut punch to one of the world’s most valuable tech firms.

Meanwhile, countries like Japan and Indonesia are quietly reshuffling trade decks—offering the U.S. better import deals to stay in its good books. Japan may increase soybean and rice imports. Indonesia might bump up food and commodity orders from America.

The bigger picture: Trade wars make the world poorer

Financial markets are jittery. Investors fear that prolonged disruption could drag the global economy toward recession. Chinese stocks edged up slightly Monday, but broader confidence remains low.

China’s President Xi Jinping is working to shore up support. Last week, he visited three Southeast Asian countries, urging unity against what he called “unilateral bullying.” His message? China is not isolating—it’s “tearing down walls.”

As Xi said in Vietnamese media, “There are no winners in trade wars.”

But for now, it looks like the global economy is stuck playing referee in a heavyweight bout where nobody’s throwing in the towel.

Also Read Delhi-Noida Traffic Jam: Was JD Vance’s Visit to Blame for the Chaos?

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TAGGED:ASEANChinaDonald Trumpglobal economyinternational tradesemiconductor sanctionstariffstrade warU.S.-China relationsUSAXi Jinping
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