China has issued a sharp rebuke to the United States following Trump’s trade agreement with the United Kingdom. The tensions between these major global powers have escalated since the announcement of ‘reciprocal’ tariffs by the US President, which came into effect on April 2.
China has been notably aggressive in its reactions, engaging in a fierce tariff exchange with President Trump, where both sides have continuously threatened to impose exorbitant import costs. Although President Trump has agreed to a ’90-day pause’ in the trade conflict between Washington and Beijing, reducing tariffs on Chinese imports from 145 percent to 40 percent, he declared a significant new trade deal with the UK on May 7.
The agreement with UK Prime Minister, Sir Keir Starmer, marks the Trump administration’s first trade deal with a foreign nation. It provides sector-specific relief from US tariffs on UK car and steel exports.
China, however, has expressed dissatisfaction with this agreement, suggesting it could negatively impact the country if the UK excludes Chinese products from its supply chains. Beijing emphasized that trade agreements between any two countries should not adversely affect a third party.
According to the Financial Times, China’s foreign ministry stated: “Co-operation between states should not be conducted against or to the detriment of the interests of third parties.” Last month, China cautioned that any other nation’s trade deals with the US would lead to complications.
The Chinese commerce ministry, on April 21, declared: “China firmly opposes any party reaching a deal at the expense of China’s interests,” and warned of ‘resolute and reciprocal’ counteractions against those who align with Trump. They further asserted that seeking self-interest at the expense of others is akin to “seeking the skin of a tiger” which would ultimately fail and harm all parties involved. “Where the strong prey on the weak, all countries will become victims,” they added.
This development places both London and Washington in a challenging situation, as China accelerates efforts to remove foreign-made components from its supply chains to safeguard against trade conflict repercussions. A Chinese government adviser remarked, “China will need to respond — the UK should not have rushed to agree to the deal.”
Zhang Yansheng, a senior researcher at the China Academy of Macroeconomic Research, expressed to the news outlet that the agreement is ‘not fair to China.’ He added, “This type of poison pill clause is actually worse than the tariffs,” urging China to openly address the issue with the UK. “The underlying problem is the US, other countries are secondary actors,” he emphasized. “It needs to be discussed in trade talks with the US.”
In contrast, the UK stands to gain from reduced tariffs on car and steel exports, provided it meets US requirements related to supply chain security and the ‘ownership of relevant production facilities.’ Observers believe that Trump has intentionally included this clause to alienate China.
The baseline 10 percent tariff imposed by Trump on other British goods will continue to be in effect. The UK government announced that the trade deal with Trump was finalized to ‘secure thousands of jobs’ and ‘protect British businesses,’ while maintaining that trade and investment with China ‘remain important to the UK.’