China warns of retaliation if US strikes trade deals with other countries at its expense

China has issued a strong warning against any trade agreements between the United States and third countries that come at the expense of Chinese interests. In a statement issued late Saturday, the Ministry of Commerce said, “If such a situation occurs, China will not accept it and will take resolute countermeasures to safeguard its legitimate rights and interests.” 

“It has been proven that only by firmly upholding its principles and positions can a country truly protect its legitimate rights,” a spokesperson was quoted as saying by Bloomberg.

Referring to the Biden administration’s ongoing strategy of imposing reciprocal tariffs, the spokesperson said, “This is a typical act of unilateral bullying that seriously undermines the multilateral trading system and disrupts the normal international trade order.”

The warning comes as the United States works to finalise several bilateral trade deals ahead of a July 9 deadline, when a 90-day suspension of reciprocal tariffs is set to expire. 

India is among the countries currently negotiating with Washington. Commerce Secretary Sunil Barthwal earlier this month said, “We are working on an early trade deal with the US. The progress has been good. We are hopeful that this will be done within the timeline.”

Rajesh Agarwal, Special Secretary in the Commerce Department and India’s chief negotiator for the bilateral trade agreement (BTA), confirmed that a US delegation was in India from June 5 to 11. He said there is “progress towards the target of finalising the first tranche of the trade deal by the fall of 2025.”

While key details of the proposed deal remain under wraps, officials have indicated that lowering tariffs and expanding market access are central to both sides’ goals. The aim is to eventually double bilateral trade to $500 billion by 2050.

Washington is seeking broader access in sectors such as food, agriculture, government procurement, intellectual property, customs, and digital trade, including cross-border data flows. Indian officials say that any movement in these politically sensitive areas would require extensive internal consultations.

New Delhi’s top priority remains the rollback of the 26% reciprocal tariff imposed by the US, which was suspended until July 9. India also continues to push for the removal of longstanding US tariffs on steel, aluminium, and auto parts.

Despite the momentum, Indian officials have described the current talks as being at a “50-50” stage. As one official told Business Today TV, “India is not going to be pushed around… We are not desperate to conclude the interim deal quickly.”

China’s sharp reaction highlights growing friction as multiple Asian economies — including Vietnam, Indonesia, the Philippines, and Bangladesh — race to secure more favourable trade terms with the US, following tariff hikes imposed in April by President Donald Trump’s administration.

(With inputs from Bloomberg)