China has urged fast-fashion retailer Shein not to move its production away from the country in response to Donald Trump's latest tariff threats, according to Bloomberg News.
The Chinese Ministry of Commerce has reportedly reached out to Shein and other companies, advising them against diversifying their supply chains by sourcing from other countries, according to a person familiar with the matter cited by the outlet.
These requests came ahead of President Trump's announcement of reciprocal tariffs that have prompted many firms to seek alternative sourcing strategies to avoid additional import levies, the source said.
The report added that it remains unclear which other companies besides Shein received similar communications from the Chinese commerce ministry.
The intervention comes amid escalating trade tensions between the world's two largest economies. Trump has threatened to impose additional 50 per cent import taxes on Chinese goods unless Beijing withdraws its retaliatory measures against his earlier tariffs.
The US president's latest charge would pile onto a 34 per cent "reciprocal" duty set to begin on 9 April, as well as a 20 per cent increase implemented earlier this year. This would take the cumulative tariff rate announced in 2025 to 104 per cent — effectively doubling the import price of goods shipped from China to the US.
In response to these threats, China's Ministry of Commerce declared: "The US threat to escalate tariffs on China is a mistake on top of a mistake. If the US insists on its own way, China will fight to the end."
Trump's harsher-than-expected tariffs have caused significant market turbulence globally, wiping trillions of dollars in value across assets, and have prompted strong rebuke from China including additional tariffs of 34 per cent on all US goods.
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