China Warns Trump Against Tariff Hikes, Threatens Retaliation on Supply Chain Deals

In a sharp warning to former U.S. President Donald Trump, China on Tuesday cautioned against reigniting trade tensions by reinstating high tariffs on Chinese goods next month. Through an official commentary in the People’s Daily, Beijing emphasized that dialogue—not unilateral pressure—is the only viable path to a lasting trade resolution. The Chinese government threatened retaliatory action not only against the U.S. but also against third countries that align with Washington in supply chain restructuring efforts aimed at excluding China.

The renewed friction follows Trump’s notification to multiple trade partners that higher tariffs will take effect from August 1, unless deals are reached. China, which faced tariffs exceeding 100% earlier this year, has until August 12 to reach an agreement or face a fresh round of import restrictions. The fragile truce reached in June now appears under strain as both sides await further developments, with businesses and investors bracing for a potential escalation in the ongoing tariff battle.

The People’s Daily, using the pseudonym “Zhong Sheng” to reflect the government’s stance, labeled Trump’s tariff tactics as “bullying” and warned that yielding to such pressure undermines legitimate national interests. It asserted that China would stand firm on principles and would not concede under threats, urging both sides to honor commitments through cooperation and mutual respect.

Beyond the U.S., China issued a stern message to countries such as Vietnam, South Korea, and Japan, which are in discussions or have already struck tariff-related deals with the U.S. that could bypass Chinese involvement in global supply chains. Beijing warned that it would “respond resolutely” to any agreements that compromise China’s economic interests in favor of short-term trade relief from Washington.

The latest developments have already roiled financial markets, with U.S. stocks sliding after Trump announced new tariffs not only on Asian exports but also on products from South Africa and Malaysia. As Washington intensifies efforts to redraw trade alliances, China is signaling that it will not sit idle and may escalate both diplomatic and economic countermeasures to defend its global position.

Source: Reuters