- Atlas News
- Posts
- China Warns Against 'Appeasing' U.S. in Escalating Global Trade War
China Warns Against 'Appeasing' U.S. in Escalating Global Trade War
How Washington’s aggressive tariff diplomacy is pressuring allies—and Beijing’s warning to the world
China has issued a sharp warning to countries considering trade deals with the United States that may undermine Chinese interests, as the global trade landscape becomes increasingly shaped by hardline U.S. protectionism. The warning signals a growing risk that the ongoing U.S.-China trade war could expand to entangle dozens of nations caught between the two economic giants.
On Monday, a spokesperson for China’s Ministry of Commerce stated unequivocally:
"Appeasement cannot bring peace, and compromise cannot earn one respect. China firmly opposes any party reaching a deal at the expense of China's interests. If this happens, China will never accept it and will resolutely take countermeasures."
The statement follows reports that the U.S. under President Donald Trump is leveraging its sweeping new tariffs to push other nations into isolating China from global trade routes. Sources close to the negotiations say Washington has proposed offering exemptions to its new tariffs—if nations agree to curb trade ties with Beijing.
🇺🇸 Trump’s Tariff Diplomacy: Pressure and Pauses
Since retaking office in January, President Trump has reignited his tariff-first approach to international trade. His administration has already levied up to 145% taxes on Chinese imports, and blanket 10% tariffs on imports from other countries, effective until at least July. When combined with previous measures, some Chinese goods could face a total tariff burden of up to 245%.
In a surprise move, Trump recently announced a 90-day suspension of these tariffs for all countries—except China. This partial pause was widely seen as a way to give Washington negotiating leverage and ease market anxieties.
Trump maintains the tariffs are part of a plan to boost U.S. manufacturing, reduce trade deficits, and funnel investment back into the American economy.
“We’re encouraging Americans to buy American again,” Trump said last week. “We’ve had 70 countries reach out to start negotiations.”
But critics say the policy is economically risky and diplomatically destabilizing.
🌍 The Domino Effect: Allies in a Bind
Nations around the world are now facing a difficult choice: comply with U.S. demands and risk retaliation from China—or defy Washington and lose favorable trade terms.
Japan kicked off tariff negotiations last week with top trade envoy Ryosei Akazawa meeting Trump in Washington.
South Korea is expected to begin similar talks this week.
India could be slapped with a 26% tariff if it fails to secure a deal. U.S. Vice President JD Vance is scheduled to meet Indian Prime Minister Narendra Modi in the coming days.
The UK may be closer to an agreement. Vance noted there’s a “good chance” of reaching a deal, adding, “We’re working very hard with Keir Starmer’s government.”
Meanwhile, European leaders were indirectly warned by China’s state-run China Daily not to “appease” the U.S., a message clearly aligned with Beijing's broader resistance to what it sees as Washington’s global economic coercion.
🇨🇳 China Responds: Tariffs and Threats
Beijing is not taking these moves lightly. In retaliation, China has imposed a 125% tax on select American goods and pledged to “fight to the end” if provoked further. Chinese officials have accused the U.S. of waging economic warfare and warned other countries that aligning with Washington could carry steep consequences.
As global supply chains continue to splinter under geopolitical strain, the latest developments suggest the trade war is no longer a bilateral spat—it’s becoming a worldwide realignment.
📉 The Bigger Picture: Markets and Uncertainty
The tit-for-tat escalation has already rattled global financial markets, and analysts warn that prolonged uncertainty could dampen investment and slow global growth. Economists argue that while reshoring production may be a long-term goal for the U.S., achieving it could take decades—if at all.
In the meantime, businesses, governments, and consumers around the world are left to navigate an increasingly complex and unpredictable trade environment.
🔍 What to Watch Next:
Will nations like India and South Korea accept U.S. terms?
Can the EU remain neutral without drawing Beijing’s ire?
Will Trump extend the 90-day tariff pause or escalate further?
As Washington flexes its economic muscle and Beijing pushes back, the world may soon be forced to choose sides in the most consequential trade war of the 21st century.
There’s a reason Morning Brew is the gold standard of business news—it’s the easiest and most enjoyable way to stay in the loop on all the headlines impacting your world.
Tech, finance, sales, marketing, and everything in between—we’ve got it all. Just the stuff that matters, served up in a fast, fun read.
Look—over 4 million professionals start their day with Morning Brew’s daily newsletter, and it only takes 5 minutes to read. Sign up for free and see for yourself!
Reply