China Warns US of Retaliation Over Potential New Trade Tariffs

Key Facts

1China’s Commerce Ministry warned it would take "all necessary measures" to respond if Washington imposes new tariffs following a review of the 2020 trade pact.

2China maintains it has upheld its Phase One agreement commitments, including intellectual property protections and access to financial and agricultural sectors.

3Beijing accused the US of hampering trade by expanding export controls and tightening scrutiny of cross-border investments.

China’s Ministry of Commerce has issued a stern warning, stating it will take "all necessary measures" to respond if Washington imposes new tariffs following a review of the 2020 trade pact. Beijing maintains that it has fully upheld its Phase One agreement commitments, specifically highlighting progress in intellectual property protections and access to financial and agricultural sectors. However, the Chinese government accused the United States of actively hampering global trade by expanding export controls and tightening scrutiny on cross-border investments. This warning comes as the US Trade Representative presses ahead with an inquiry into China's compliance, raising fears of a renewed trade war. Market analysts suggest that escalating tensions are likely to increase volatility across global equity indices like the S&P 500 (SPY). Furthermore, the geopolitical friction is expected to drive investors toward safe-haven assets such as Gold (XAU/USD) while weighing on trade-sensitive currencies like the AUD/USD and USD/CNH.