US-China Trade War: Southeast Asia Caught In The Middle As Beijing Warns Against Making Trade Pacts At Its Expense
China issued a stern warning to countries contemplating new economic agreements with the United States that could harm Chinese interests. In a pointed statement on Monday, Beijing accused Washington of misusing tariffs and cautioned other nations against collaborating with the US in a way that disadvantages China.
The Chinese Commerce Ministry warned that the country will 'firmly oppose any party striking a deal at China's expense and will take countermeasures in a resolute and reciprocal manner', reported Reuters.
This statement came in reaction to a Bloomberg report suggesting that the Trump administration is actively working to dissuade nations seeking tariff exemptions from maintaining or expanding trade ties with China. The reported strategy even included possible monetary penalties for countries that fail to comply.
Rising Tariff Barriers And Global Ramifications
Tensions have flared as Washington raised tariffs on Chinese imports to 145 per cent, prompting retaliatory measures from Beijing, which imposed duties of up to 125 per cent on American goods. These tit-for-tat moves have effectively disrupted bilateral trade, creating barriers that resemble embargoes. Still, China signalled last week that it does not plan to raise its tariffs further.
“The United States has abused tariffs on all trading partners under the banner of so-called ‘equivalence’, while also forcing all parties to start so-called ‘reciprocal tariffs’ negotiations with them,” said a spokesperson for China’s Commerce Ministry. The ministry emphasised China’s resolve and capability to defend its rights, while reaffirming its commitment to international cooperation.
Beijing has also taken its grievance to the global stage, planning to convene an informal United Nations Security Council session this week. The meeting aims to spotlight what China calls Washington’s economic “bullying” that undermines peace and development efforts.
Also Read : Second Boeing Jet Returns From China To US As Tariff Tensions Escalate, Says Report
Southeast Asia Caught In The Middle
As the tariff war intensifies, Southeast Asian countries face mounting pressure. “The fact is, nobody wants to pick a side,” said Bo Zhengyuan, a partner at policy consultancy Plenum. “If countries have high reliance on China in terms of investment, industrial infrastructure, technology know-how and consumption, I don’t think they’ll be buying into US demands. Many Southeast Asian countries belong to this category.”
ASEAN economies are particularly vulnerable, given their significant trade with both powers. China, the bloc’s largest trading partner, recorded $234 billion in two-way trade with ASEAN in the first quarter of 2025, according to Chinese customs data. The US ranks fourth, with bilateral trade hitting $476.8 billion in 2024.
Several Southeast Asian nations have been directly affected by the tariffs, with six countries facing duties ranging from 32 per cent to 49 per cent. In response, regional leaders are engaging in talks with Washington. Economic ministers from Thailand and Indonesia are currently in the US, and Malaysia is expected to follow this week.
Meanwhile, President Xi Jinping’s recent visits to three Southeast Asian countries emphasised regional cooperation. Xi underscored China’s commitment to expanding trade networks and rejecting unilateral actions. “There are no winners in trade wars and tariff wars,” he wrote in an article published in Vietnamese media.
On the business front, the fallout continues. US Trade Representative Jamieson Greer earlier revealed that nearly 50 countries have contacted him to discuss Trump’s sweeping tariffs. Companies like Nvidia are also feeling the pinch, with the chipmaker announcing $5.5 billion in charges due to restrictions on AI chip exports.
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