China has warned it will take action if other countries sign trade agreements with the United States that damage Chinese interests. The strong statement comes after the US urged its allies to isolate China in ongoing tariff talks. Beijing has called Washington’s actions “economic intimidation” and promised countermeasures. As tensions rise, financial markets are reacting. Gold and the euro hit record highs on Monday while investors moved away from riskier assets.
China Pushes Back on US Trade Pressure
China’s Ministry of Commerce spoke out firmly after reports of new US-led trade deals aimed at limiting China’s influence. The ministry accused the US of trying to control global trade through what it called “unilateral bullying.” Officials said China respects fair and peaceful negotiations but will not accept any agreement that damages its role in world trade.
“If trade becomes a jungle ruled by force, every nation risks becoming a victim,” the ministry warned in its statement. The comment points to growing frustration over what China sees as unfair pressure from Washington.
Beijing made it clear that any deal signed by a US partner that hurts Chinese interests will lead to a strong response. The warning comes as the US explores “secondary tariffs” on countries that maintain close trade ties with China. These extra tariffs would target partners who import or export goods through Chinese supply chains.
Xi Jinping Focuses on Regional Partnerships
As pressure grows from the US, Chinese President Xi Jinping has moved to strengthen ties in Asia. He recently visited Vietnam, Malaysia, and Cambodia, aiming to build a stronger economic bloc. The state-run Xinhua News Agency said China is pushing for deeper regional integration as protectionism spreads across the globe.
This diplomatic effort is seen as a clear sign that China is looking to reduce reliance on trade with the US. It also reflects a shift in focus toward neighboring economies that may be more open to Chinese investment and cooperation.
Tariff Battles on Pause, But Tensions Remain
Although both Washington and Beijing have paused new tariffs for now, they remain locked in a broader economic conflict. The US currently applies a 145% tariff on Chinese goods. In return, China has placed a 125% tariff on American imports.
Former President Donald Trump weighed in, calling further tariff hikes unnecessary. He warned that more increases could damage bilateral trade. However, China says it will ignore any future moves, calling them “a pointless numbers game.”
Strategic Resources Become New Battleground
The trade war has expanded beyond goods to include critical minerals and strategic materials. China has limited exports of rare earth elements used in high-tech industries. In response, Trump signed an executive order to review foreign mineral imports. He stressed the importance of rare earths for national security, especially in defense and energy sectors.
In a separate move, the US began charging docking fees for Chinese-built ships at American ports. This step followed a Biden-era investigation into Chinese influence in global shipping infrastructure. The United States Trade Representative (USTR) confirmed the new fees, saying they aim to protect long-term security.
So far, China has shown little interest in reopening trade talks. Trump continues to claim Beijing will return to negotiations, but signs of progress remain limited.
Financial Markets React to Trade Strains
As US-China trade tensions heat up, global investors are moving to safer assets. During the Asian trading session on Monday, gold prices jumped. COMEX gold futures rose 1.8%, hitting $3,389 per ounce. Spot gold also climbed 1.4%, reaching a record $3,376.
The euro surged past $1.50 against the US dollar—its highest point since 2021. Other traditional safe currencies like the Japanese yen and Swiss franc also gained strength. Traders appear worried that worsening trade ties could lead to broader economic troubles.
While Western stock markets remained closed for Easter Monday, US stock futures dropped early in the day. The risk-off mood shows how seriously global markets are taking the renewed trade conflict.
Long-Term Impacts Still Unclear
The standoff between the US and China shows no signs of easing. Both sides are digging in, and the growing number of trade restrictions could affect industries worldwide. The use of tariffs, export bans, and new shipping fees point to a wider strategy of economic pressure.
At the same time, China’s focus on Asia and critical minerals suggests a long-term shift away from dependence on the West. If these trends continue, the global trade system could split into separate zones of influence.
With each new move, the US-China trade rivalry grows more intense. China’s recent warning marks a turning point, showing that Beijing is ready to respond more forcefully. As leaders on both sides stick to hardline positions, investors and global markets brace for more disruption.