China warns Trump over tariffs, threatens countermeasures targeting supply chain agreements
China on Tuesday cautioned the Trump administration against reigniting trade tensions by reimposing tariffs on Chinese goods next month and warned it would retaliate against countries that enter supply chain agreements aimed at excluding China.
Washington and Beijing reached a tentative trade framework in June that restored a fragile truce, but with many details unresolved, traders and investors on both sides of the Pacific remain cautious, uncertain whether it will hold or collapse into renewed tensions.
On Monday, President Donald Trump began notifying trade partners of steep tariff hikes set to take effect on August 1. These follow his earlier decision to delay the bulk of April’s duties—excluding a 10% portion—to allow time for negotiations with key economies.
China, which had faced initial tariff rates exceeding 100%, has until August 12 to reach a deal with the White House to avoid the reimposition of additional curbs stemming from the tit-for-tat exchanges in April and May.
"One conclusion is abundantly clear: dialogue and cooperation are the only correct path," said a commentary in the official People’s Daily, referring to the ongoing tensions. The piece was signed “Zhong Sheng” (Voice of China), a pseudonym used to convey Beijing’s official stance on foreign affairs.
Reaffirming China's view that Trump’s tariff tactics amount to “bullying,” the commentary added, “Experience has shown that only by firmly defending principled positions can one truly safeguard legitimate rights and interests.” The statement signals a hardening posture should Trump proceed with what the paper called a “so-called ‘final deadline.’”
According to the Peterson Institute for International Economics, the average U.S. tariff on Chinese exports now stands at 51.1%, while China's average tariff on U.S. goods is 32.6%, with both countries having imposed duties across their full trade volumes.
The commentary also criticized regional economies contemplating trade deals with Washington that exclude China from supply chains.
It specifically pointed to Vietnam, which recently secured a tariff cut to 20% from 46% on goods “transshipped” through its territory—most of them originally from China—though those items will now face a 40% levy.
"China firmly opposes any agreements that trade away Chinese interests for tariff relief," the article said. "If such a situation occurs, China will not accept it and will respond decisively to defend its legitimate interests."
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