China has threatened to retaliate if its interests are damaged by the newly announced U.S.-Vietnam trade agreement, as tensions between Beijing and Washington deepen. The pact, unveiled by U.S. President Donald Trump, targets goods transshipped through Vietnam with a 40% tariff—a move aimed at stopping Chinese manufacturers from dodging existing U.S. duties.

Beijing’s Response to U.S. Strategy

Chinese Ministry of Commerce spokeswoman He Yongqian said at a Thursday press briefing that China welcomes fair trade negotiations but “firmly opposes any party striking a deal at the expense of China’s interests.” She warned that if Beijing’s rights are violated, “China will firmly strike back to protect its own legitimate rights and interests,” though she offered no specifics on potential measures.

The statement reflects China’s growing unease with a series of U.S. trade deals designed to reduce America’s trade deficit while limiting China’s global trade influence.

U.S. Policy Targets Transshipment

Trump's administration says the 40% tariff on goods rerouted through Vietnam is necessary to block Chinese producers from exploiting loopholes to avoid U.S. tariffs. The White House framed the deal as part of a broader effort to reset America’s trade relationships in Asia.

The agreement follows a pattern of pacts under Trump that prioritize domestic economic gains, often at the cost of escalating trade disputes with China.

Trade Frictions Mount

China’s warning comes as it nears a decision on a separate anti-dumping investigation into European Union brandy sales, suggesting that Beijing is preparing its own trade responses. Analysts warn that retaliatory steps could extend into new sectors, deepening trade conflict with both the U.S. and its allies.