China warns Trump on tariffs, asks US to not revive trade tensions

China has issued a firm warning to the Trump administration, urging it not to revive trade tensions by reinstating tariffs on Chinese goods from next month. Beijing has also threatened to retaliate against nations that form agreements with the United States to exclude China from supply chains.

In June, Washington and Beijing reached a trade framework aimed at restoring a fragile truce. However, many details remain uncertain, leaving traders and investors on both sides watching closely to determine if this will lead to lasting peace or another round of conflict.

On Monday, President Donald Trump began informing trade partners of a planned increase in US tariffs from August 1. This follows his earlier decision to delay most of his April tariff duties, allowing nations time to negotiate deals with the world's largest economy.

China, initially targeted with tariffs exceeding 100 per cent, has a deadline until August 12 to reach an agreement with the White House to avoid additional import restrictions imposed during the tit-for-tat exchanges in April and May.

An article in the official People's Daily, signed "Zhong Sheng" or "Voice of China," emphasised: "One conclusion is abundantly clear: dialogue and cooperation are the only correct path," and reiterated that Trump's tariffs constitute "bullying." The piece also asserted, "Practice has proven that only by firmly upholding principled positions can one truly safeguard one's legitimate rights and interests."

The tariffs currently stand at an average of 51.1 per cent on Chinese exports to the US, while Chinese duties on US goods average 32.6 per cent, according to the Peterson Institute for International Economics. This escalation has set the stage for further tensions if Trump adheres to what the People's Daily described as "a so-called 'final deadline.'"

The People's Daily also criticised regional economies considering tariff reduction agreements with the US that exclude China. Vietnam recently secured a tariff reduction for goods "transshipped" through it, but China has stated, "China firmly opposes any side striking a deal that sacrifices Chinese interests in exchange for tariff concessions."

The article concluded with a strong warning: "If such a situation arises, China will not accept it and will respond resolutely to protect its legitimate interests." This highlights Beijing's firm stance against any actions it perceives as undermining its trade position.