London refuses to let US tariff talks dictate China relations

The UK will not allow ongoing trade and tariff negotiations with the United States to dictate its approach to China, despite growing pressure from former US President Donald Trump’s administration to isolate Beijing, a senior British government source has confirmed.

According to a report published by UK media, US officials under Trump are using current trade negotiations with over 70 countries, including the UK, to persuade allies to economically distance themselves from China in exchange for lower import tariffs, per Caliber.Az.

This move follows Washington’s decision to impose a sweeping 125 per cent tariff on all Chinese imports, escalating the US-China trade war.

While the UK is among the countries seeking tariff relief for its exports to the US, a British official insisted the government would not allow these discussions to shape its policy toward Beijing. “Our position and approach [towards] China is clear,” the source said, adding that the UK’s dealings with China and trade talks with the US "should not be conflated.”

Downing Street remains committed to a “pragmatic” relationship with China and is reportedly aiming to revive the UK-China Joint Economic and Trade Commission (Jetco), which has remained dormant since 2018 due to deteriorating relations following Beijing’s actions in Hong Kong.

The Government’s policy has faced renewed scrutiny this week after it pushed through emergency legislation to take control of British Steel from its Chinese owner, Jingye, citing national interest concerns. Business Secretary Jonathan Reynolds initially said he would not “personally bring a Chinese company into our steel sector,” though he later softened his stance. The comments came amid allegations that Chinese executives attempted to “sabotage” the final two operational blast furnaces in the UK.

The Chinese embassy in London responded sharply to the developments, accusing British politicians of “absurd” anti-China rhetoric. “Had it not been for the involvement of this Chinese company, British Steel workers might have already faced the risk of unemployment,” a spokesperson said.

They also condemned what they called British silence on US trade tactics, stating: “At a time when the US is wielding the tariff stick against all countries, the UK included, and engaging in unilateral and protectionist trade bullying, those British politicians just keep slandering the Chinese Government and Chinese enterprises instead of criticising the United States.”

In its first public reaction since the UK intervened in Jingye’s British Steel operations—short of full nationalisation—the company called for respect of its rights as a foreign investor. Jingye’s CEO, Zengwei An, said in a statement to the Financial Times that while the company understood the use of emergency laws, it “requests that the UK government respect and protect the legitimate rights and interests of Jingye as a foreign investor throughout this process.”

Despite the tensions, Reynolds is expected to travel to China later this year in an effort to resume trade discussions and encourage greater investment in the UK.

Meanwhile, The Wall Street Journal reported that US officials are pushing for new rules in tariff negotiations that would prevent Chinese firms from exporting goods to third countries for re-export to the US under favourable terms. This strategy is part of Trump’s broader effort to economically isolate China, which saw stronger-than-expected growth of 5.4 per cent in the first quarter of this year.

On April 15, Trump suggested that countries may soon have to choose between economic partnerships with the US or China.

However, trade experts believe this approach may present a more complex challenge for UK Prime Minister Keir Starmer than post-Brexit relations with the EU. Allie Renison, director at SEC Newgate and former Department for International Trade official, said Washington’s drive to pressure allies into disengaging from China is “accelerating under Trump.”

She added that while the British Government is reassessing Chinese investments in key industries in light of the British Steel controversy, it is “unlikely to want to divest from economic engagement with China entirely.”

“Some areas it could offer to work with the US on in this space is tackling goods dumping, circumvention of tariffs and cooperation on export controls, although Washington may want to see more substantive alignment,” she noted.

Renison concluded that while much attention has been paid to the UK’s balancing act between the US and the EU, “how it deals with China on trade may end up more of a dilemma.”

By Tamilla Hasanova