BEIJING: China issued a stern warning to the Trump administration on Tuesday, cautioning against reigniting trade tensions by restoring tariffs on Chinese goods next month. The country also threatened to retaliate against nations that strike agreements with the US to exclude China from supply chains.
The warning comes as Washington and Beijing navigate a fragile trade truce established in June, with many details still unresolved. Traders and investors remain uncertain whether the agreement will hold or collapse under renewed pressure.
President Donald Trump recently notified trade partners of impending tariff hikes starting August 1, following a temporary delay on most of his April duties. China, initially facing tariffs exceeding 100%, has until August 12 to negotiate a deal with the White House to avoid additional import restrictions.
“Dialogue and cooperation are the only correct path,“ stated China’s official People’s Daily in a commentary. The article, signed under the pseudonym “Zhong Sheng” (Voice of China), reiterated Beijing’s stance that Trump’s tariffs constitute “bullying.”
The commentary emphasised that upholding principled positions is essential to safeguarding national interests. It also criticized regional economies considering tariff reduction deals with the US that sideline China in supply chains.
Vietnam recently secured a tariff reduction from 46% to 20% for goods transshipped through its territory, many of which originate from China. Beijing warned that it would “respond resolutely” to any agreements that compromise its interests.
The Peterson Institute for International Economics noted that the average US tariff on Chinese exports is now 51.1%, while China’s average duty on US goods stands at 32.6%. - Reuters
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