Beijing asserts it may respond to US trade measures amid escalating tensions over industrial subsidies and tariffs.
China’s Commerce Ministry stated it reserves the right to take necessary actions against US overcapacity tariffs. The ministry will monitor and assess US follow-up measures, signaling potential retaliation in the trade dispute.
The warning follows recent US tariffs targeting Chinese industrial sectors, including electric vehicles and steel. Analysts note similar actions in 2018 led to tit-for-tat tariffs, weighing on global risk sentiment.
Markets may react cautiously as investors weigh the risk of further trade barriers, potentially favoring safe-haven assets like JPY, CHF, and gold.