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UK refuses to cut China ties to normalize trade relations with US

  • By Al Mayadeen English
  • Source: Agencies
  • 17 Apr 2025 10:14
  • 1 Shares
6 Min Read

The UK has rejected a reported US push to isolate China economically in exchange for lower tariffs, insisting it will not sever ties with Beijing to improve trade with Washington.

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  • Flags of China and the Union Jack stand during the China-UK Energy Dialogue in Beijing, China Monday, March 17, 2025. (Florence Lo/Pool Photo via AP)Flags of China and the Union Jack stand during the China-UK Energy Dialogue in Beijing, China, Monday, March 17, 2025 (Pool Photo via AP)

The United Kingdom will not sever its economic relationship with China in order to improve trade ties with the United States, according to inews, which cited a source within the British government.

On Wednesday, The Wall Street Journal reported that the US is seeking trade pledges from allies aimed at economically isolating China, in return for reduced tariffs. However, for the UK, combining tariff talks with discussions about its relationship with Beijing is reportedly off the table.

"It is unacceptable" to link tariff relief with cooperation on China, the source told inews, emphasizing that the UK intends to maintain a “pragmatic” approach to its dealings with Beijing. “Our position and approach [towards] China is clear,” the source added.

Earlier this month, US President Donald Trump signed an executive order introducing reciprocal tariffs on imports from multiple countries. The order set a base rate of 10%, with significantly higher rates imposed on 57 nations based on individual trade deficits with the US.

On April 9, Trump announced a temporary 10% tariff over a 90-day period on more than 75 countries that had not retaliated and had requested negotiations—China was excluded from this offer. As trade tensions escalated, tariffs on Chinese goods surged to 145%, while China's retaliatory tariffs on American products rose to 125%.

In a related development, the trade war between the United States and China intensified on Wednesday, with Washington announcing new tariffs that could see duties on Chinese imports soar to as high as 245%. The White House attributed the move to Beijing's "retaliatory actions," signaling a hardening stance in the ongoing economic conflict.

Wider context

Alongside the tariff hike, US President Donald Trump authorized an investigation into the national security implications of America's dependence on imported critical minerals, such as cobalt, lithium, nickel, and rare earth elements, which are key components in electric vehicle batteries and other technologies. The administration stated that this reliance leaves the country vulnerable to "serious, sustained, and long-term supply chain shocks" and introduces potential "risks to national security."

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The new announcement suggests a 100% increase in US tariffs, though no formal breakdown has yet been offered to explain how the cumulative 245% figure is calculated.

In response, a senior Chinese official criticized the impact of US trade measures, stating they are placing "pressure" on China. Still, Beijing reported stronger-than-expected economic results for the first quarter, including 5.4% GDP growth, a 6.5% rise in industrial production, and a 4.6% boost in retail sales over the past year. Despite these positive figures, Chinese authorities warned that global economic conditions are becoming "more complex and severe" and emphasized the need for further efforts to bolster domestic consumption and growth.

Foreign Ministry spokesperson Lin Jian condemned Washington's approach, saying, "If the US really wants to resolve the issue through dialogue and negotiation, it should stop blackmailing and talk to China on the basis of equality, respect and mutual benefit."

Trump, for his part, insisted that Beijing must initiate any further talks. "The ball is in China's court. China needs to make a deal with us. We don't have to make a deal with them," he said, reiterating claims that China had reneged on a major Boeing agreement.

Tariff spiral

Tariff reciprocity has been a recurring theme in Trump's economic messaging. He has frequently accused nations, including China, India, and Brazil, of imposing heavier duties on US goods than the US applies to their exports. Since early this year, his administration has introduced multiple new levies, including a general 10% tariff on several trade partners and specific charges on Chinese goods—among them, a 20% tax linked to fentanyl concerns and a 125% duty for what the US describes as unfair trade conduct.

The accumulation of tariffs had already pushed the total duty rate beyond 100% by early April, causing significant volatility in global financial markets. Although some measures have been temporarily paused, none of those suspensions have involved China.

China has responded with its own set of countermeasures, including halting imports of sorghum, poultry, and bonemeal, enforcing trade restrictions on 27 American companies, and filing a formal complaint with the World Trade Organization. The WTO has warned that the current standoff could have "severe negative consequences for the world," estimating a 0.2% drop in global merchandise trade in 2025, with possible downside risks reaching as much as a 1.5% contraction.

Read more: China says 'not afraid to fight' a trade war with the US

Seeking to build international support, Beijing has turned to other major economies. During a recent diplomatic engagement, Chinese Foreign Minister Wang Yi encouraged deeper ties with India, proposing that the two nations "make elephant and dragon dance" and take joint leadership in opposing "hegemonism and power politics." China also extended an invitation to the European Union to cooperate in resisting "unilateral bullying" by the United States, reinforcing President Xi Jinping's call for a united defense of global justice and fairness.

Trump rejects EU proposal of joint action against China

Meanwhile, The Washington Post, citing European Union officials, revealed that the Trump administration is not interested in taking joint action with the European Union against China, a move the EU has proposed to Washington in an attempt to avoid imposing tariffs on European imports.

"The Trump team has shown zero interest in speaking to us about China,” a senior EU official who has met with Trump Cabinet members in recent months said.

  • United States
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