China Issues Stern Warning to Trump Over Tariff Threats

On Tuesday, China warned the Trump administration against reintroducing tariffs on Chinese goods in August, threatening to retaliate not only against the U.S. but also against other countries that cooperate with America in restructuring supply chains to exclude China. This comes amid ongoing tensions following a temporary trade truce struck in June, which left many details unresolved and uncertainty looming over the future of U.S.-China trade relations.

The Trump administration began notifying countries of plans to sharply increase tariffs by August 1. China was specifically targeted with proposed duties exceeding 100% and now has until August 12 to reach a new agreement with the White House to avoid further restrictions. Trump’s strategy appears aimed at forcing nations to cut deals with the U.S. while applying pressure on China to comply with American trade terms.

China’s response, through an editorial in the Communist Party’s People’s Daily, emphasized the need for mutual dialogue over confrontation. Signed “Zhong Sheng”   a pseudonym used for official foreign policy positions   the article criticized the U.S. for engaging in economic “bullying” and declared that only principled resistance can protect China’s legitimate rights.

The average U.S. tariff on Chinese goods has soared to 51.1%, with China’s average tariff on American products now at 32.6%, according to the Peterson Institute for International Economics. These figures reflect the deepening divide in bilateral trade and growing global concern over further economic fallout.

Beyond its direct conflict with the U.S., China also signaled it would act firmly against other nations that strike supply chain agreements with America at Beijing’s expense. The People’s Daily editorial warned that countries seeking tariff relief by bypassing China   such as Vietnam, which recently secured a deal lowering U.S. tariffs on transshipped goods   could face serious backlash.

China made clear that it will not tolerate being cut out of global trade arrangements and will respond “resolutely” to any action it views as undermining its interests. The message targeted both Washington’s broader strategy and the willingness of certain countries to adapt their trade frameworks in ways that disadvantage China.

This stance reflects a shift in China’s diplomatic tone   combining a call for peaceful cooperation with a readiness to defend its strategic interests through firm retaliation. Beijing’s warning signals that future conflicts may not be limited to just the U.S. and China but could involve a wider reshuffling of alliances and economic partnerships across Asia and beyond.

Meanwhile, investors and multinational businesses are watching closely, as the outcome of these disputes could shape global trade flows and supply chain strategies for years to come. With August 1 looming, the threat of another round of tariffs   and a broader decoupling of the world’s two largest economies   seems increasingly real. The situation remains volatile, with high stakes for governments and markets alike.

See also: Japan vows to seek U.S. auto tariff concessions in trade talks