China Strengthens Ties with EU and ASEAN in Response to U.S. Tariffs
Amid escalating trade tensions, China is seeking to build strategic partnerships with the European Union (EU) and member states of the Association of Southeast Asian Nations (ASEAN) to counterbalance the United States’ latest tariff escalation. The move follows a sharp increase in import duties by U.S. President Donald Trump, who recently announced a sweeping 125 percent tariff on a wide range of Chinese goods.
In a direct response, Beijing announced that it will impose an 84 percent tariff on selected U.S. imports, set to take effect on Thursday. The European Union has also reacted to Washington’s protectionist measures by authorizing retaliatory tariffs of up to 25 percent, further intensifying the trade standoff.
According to a statement released by China’s Ministry of Commerce (MOFCOM), both China and the EU have reaffirmed their commitment to defending the multilateral trading system anchored by the World Trade Organization (WTO). The statement emphasized the shared resolve to uphold fair trade principles and ensure global economic stability.
High-level discussions between Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maroš Šefčovič took place via video conference earlier this week. The dialogue focused on strengthening China-EU economic collaboration and formulating a coordinated response to the U.S. measures, which both parties described as “reciprocal tariffs” in breach of international trade norms.
China and the EU, being each other’s largest trading partners, have expressed mutual concerns over the impact of unilateral U.S. policies on the global economic system. Minister Wang stated that Washington’s actions “seriously infringe upon the legitimate rights of other nations, violate WTO regulations, and threaten the integrity of the rules-based international trade order.”
The outreach to ASEAN nations, although not detailed in the official statement, is part of a broader Chinese strategy to consolidate support among regional trade partners who may also be adversely affected by shifts in global trade policy initiated by the U.S.
As geopolitical and economic uncertainties persist, China’s pivot toward multilateralism and its emphasis on diplomatic engagement with other major economies reflect a desire to mitigate the fallout from the ongoing trade conflict and prevent further fragmentation of the global trade system.
European Markets Surge Following Temporary Pause in Trump’s Tariff Escalation
European stock markets rallied on Thursday morning, recovering from steep losses after U.S. President Donald Trump announced a temporary suspension of aggressive tariffs on most countries. The surprise move came just hours after a global market downturn prompted by the latest escalation in U.S.-China trade tensions.
In early trading, Germany’s DAX in Frankfurt soared more than 7 percent to 21,124.44 points. France’s CAC 40 in Paris rose 7.3 percent to 7,362.06, while London’s FTSE 100 climbed 5.3 percent to 8,089.72. The recovery follows similar gains seen in U.S. and Asian markets overnight.
Wednesday had seen global markets falter, with European indices dropping approximately 3 percent following the implementation of new U.S. tariffs and China’s subsequent retaliatory duties. However, Trump’s partial reversal, which excluded all countries except China from the steeper levies, triggered a wave of renewed investor optimism.
While the U.S. administration has maintained a 10 percent universal tariff as a baseline, the suspension of additional duties was perceived by markets as a sign of de-escalation—at least for now. However, Trump simultaneously intensified economic pressure on China by raising tariffs on Chinese imports to 125 percent, reinforcing the divide between Washington and Beijing.
Analysts have cautioned against assuming long-term stability. A report by Deutsche Bank highlighted ongoing concerns regarding policy consistency, stating: “While there has been understandable relief… the genie is still out of the bottle on policy unpredictability.”
The report further emphasized that the introduction of a baseline 10 percent tariff across all imports represents the most significant increase in trade barriers in decades. “This move adds to an already uncertain global trade environment, with little clarity on the criteria the U.S. would use to assess or negotiate future trade agreements,” the analysis concluded.
Though markets are momentarily buoyed by the tariff pause, the broader implications of a prolonged and unpredictable trade stance by the U.S. remain a key concern for global investors.
Pakistan Plans Diplomatic Push as U.S. Delays New Tariff Measures
Pakistan is preparing to dispatch a high-level delegation to Washington in the coming weeks to engage in talks over newly proposed U.S. tariffs, government officials confirmed, following a partial delay in the measures announced by U.S. President Donald Trump.
The planned visit comes in response to Washington’s recent move to impose a 29 percent tariff on Pakistani imports, part of a broader wave of U.S. trade actions targeting multiple partners and stirring uncertainty in global markets.
In a late development on Wednesday, President Trump announced a 90-day postponement for the implementation of the increased tariffs. However, a universal 10 percent baseline tariff will still apply to all countries, including Pakistan, during the review period.
The office of Prime Minister Shehbaz Sharif confirmed the decision to send a delegation, underscoring Islamabad’s intent to address the potential economic impact of the new trade policies through diplomatic engagement.
A source within the Ministry of Commerce, speaking anonymously to AFP on Thursday, affirmed that the visit remains on schedule despite the temporary delay. “A high-level government delegation is scheduled to depart for Washington in the coming weeks to hold talks with U.S. officials,” the official stated.
Trade between Pakistan and the United States remains a critical component of Pakistan’s export economy. According to the Office of the United States Trade Representative, bilateral trade between the two countries totaled $7.3 billion in 2024. U.S. imports from Pakistan amounted to $5.1 billion, with cotton and textile products forming a significant portion of the trade.
As global markets continue to react to the evolving U.S. trade stance, Pakistan is seeking to mitigate any long-term disruptions through dialogue and negotiation.
Trump Tariffs Live Updates:
Despite an escalating trade standoff, U.S. President Donald Trump voiced optimism on Thursday about reaching agreements with global trade partners, including China. Speaking from the White House, Trump said he believes negotiations will eventually lead to resolutions across the board.
“A deal will be made with China. A deal will be made with every one of them,” the President stated, reiterating his administration’s position that current tariff measures are a means to secure more favorable terms for the United States.
However, Trump suggested that Beijing was struggling to formulate a path forward. “They don’t quite know how to go about it,” he said, referring to Chinese leaders who have thus far maintained a firm stance by imposing significant retaliatory tariffs on American goods.
The remarks come amid ongoing tensions and tit-for-tat tariff hikes between the world’s two largest economies, which have sent ripples through global markets and prompted international calls for restraint and dialogue.
Trump’s comments signal continued pressure on China while maintaining the possibility of future negotiation—a stance that has become a hallmark of his administration’s trade strategy.
Trump Tariffs Live Updates: China Urges Dialogue and Mutual Respect in Response to U.S. Tariff Hike
In response to U.S. President Donald Trump’s dramatic move to raise tariffs on Chinese imports to 125%, Beijing has called for calm and constructive engagement. China’s Ministry of Commerce emphasized the importance of dialogue over confrontation in navigating the escalating trade dispute.
“We hope the United States will work with China to find common ground,” said ministry spokeswoman He Yongqian in a statement issued Thursday. “Resolving differences should be rooted in mutual respect, peaceful coexistence, and a commitment to win-win outcomes.”
The comments reflect China’s continued push for diplomacy amid a growing trade rift that has already triggered economic ripples globally. While both nations have implemented sweeping duties on each other’s goods, Beijing has maintained that cooperation remains the most sustainable path forward.
He Yongqian added that China remains open to negotiations and urged Washington to engage in talks that prioritize stability and shared interests rather than unilateral measures.
Trump Tariffs Live Updates: Tariff Truce Bypasses China as EU, Japan Secure 90-Day Relief
Global financial markets, which reeled after last week’s announcement of sweeping new US tariffs, saw a momentary reprieve on Wednesday as President Donald Trump confirmed a 90-day delay on the measures for most countries.
Nations including Japan and members of the European Union were granted the temporary suspension, aimed at creating space for negotiations and easing immediate tensions. However, China was notably excluded from the tariff pause, leaving its exports still subject to the full brunt of the increased duties.
The decision underscores Washington’s continued hardline stance on Beijing amid deepening trade disputes.
Trump Tariffs Live Updates: India Rejects China’s Unity Appeal as Trump Spares Russia in Tariff Blitz
India has opted not to align with China’s recent appeal for a united front against escalating U.S. trade tariffs, signaling a more independent stance amid growing global economic tensions. Despite China’s push for broader cooperation among key global players, New Delhi has chosen to refrain from endorsing any formal bloc or response strategy.
In a surprising development, Russia—long considered a strategic partner to Beijing—was not included in the list of countries facing new U.S. tariff penalties. This exemption has raised eyebrows among analysts, given Moscow’s alignment with China on various international fronts. The U.S. administration has so far not clarified the reasoning behind Russia’s exclusion, even as other major economies brace for the impact of heightened trade barriers.
Trump Tariffs Live Updates:China Pushes Back as U.S. Tariffs Escalate, Seeks Global Support Amid Economic Uncertainty
As President Donald Trump presses forward with sweeping tariffs on Chinese goods—raising import duties to a staggering 125%—Beijing has responded with both economic retaliation and diplomatic outreach. China’s newly announced 84% tariffs on U.S. products took effect immediately, signaling a firm stance in what is fast becoming a high-stakes global trade conflict.
Unlike many other nations granted a 90-day grace period under Washington’s new tariff framework, China finds itself excluded from the reprieve. The move has prompted sharp criticism from Chinese officials, who have described the U.S. strategy as “economic coercion” and warned of serious consequences for global trade stability.
In an effort to rally international backing, China has launched a diplomatic campaign aimed at reinforcing partnerships and isolating Washington’s trade approach. Premier Li Qiang recently held discussions with European Commission President Ursula von der Leyen, affirming a shared commitment to deeper economic collaboration. At the same time, Chinese Commerce Minister Wang Wentao engaged with EU Trade Commissioner Maroš Šefčović, denouncing the U.S. actions as a violation of global trade rules under the World Trade Organization (WTO).
Despite Beijing’s push for unity, key regional players have hesitated to align with China. Countries such as India and Australia have chosen not to participate in a coordinated response, instead adopting more cautious, independent positions. Their restraint underscores the complexity of the global response to the U.S.-China standoff.
Markets reacted with relief to Trump’s partial tariff rollback. Wall Street posted major gains, with the S&P 500 soaring 9.5% and the Dow Jones climbing nearly 3,000 points. Asian markets followed suit, with Japan’s Nikkei index recording a 9.1% surge. However, economists warn that these rebounds may be short-lived.
Persistent tensions between Washington and Beijing are keeping investors wary. The exclusion of China from the U.S. tariff pause has introduced new layers of uncertainty, shaking global bond markets and pushing oil prices lower amid fears of prolonged economic disruption.
Beijing, for its part, has made its position clear. Chinese officials say they are prepared to stand firm until Washington alters its course. In the meantime, Southeast Asian economies such as Vietnam and Cambodia—heavily reliant on Chinese manufacturing links and U.S. consumer markets—are navigating rising supply chain instability and mounting pressure on their trade-dependent sectors.
As the tariff battle deepens, global economic recovery efforts are entering uncharted territory. With diplomacy, economics, and geopolitics now colliding on a global scale, the next steps taken by both Washington and Beijing may shape international trade for years to come.
