China criticizes Trump on tariffs, threatens supply chain retaliation
China, initially targeted with tariffs surpassing 100 percent, has until August 12 to negotiate an agreement with the White House to prevent Trump from reintroducing further import restrictions.
China warned the Trump administration on Tuesday that if tariffs on its exports are restored next month, there could be a resumption of trade conflicts. Additionally, the nation showed that it was prepared to take retaliatory action against countries that enter into agreements with the US that aim to bar China from supply chains. Beijing and Washington reinstituted a precarious truce in June by establishing a trade framework. Traders and investors throughout the Pacific are closely watching the scenario to see if it will break down or pave the path for a lasting detente, though, as many elements are still unclear.
President Donald Trump started the process of alerting trading partners to the substantial hike in US tariffs that will go into effect on August 1 on Monday.This move comes after he already delayed almost all but 10% of the tariffs that were originally planned for April, giving nations more time to work out deals with the biggest economy in the world.
“One conclusion is abundantly clear: dialogue and cooperation are the only correct path,” the official People’s Daily said in a commentary about the growing trade friction between the US and China. The piece was signed “Zhong Sheng,” which translates to “Voice of China,” a term the journal uses to express viewpoints on global affairs. The piece reiterated Beijing’s view that Trump’s tariffs amount to “bullying,” saying, “Practice has proven that one can truly safeguard one’s legitimate rights and interests only by firmly upholding principled positions.” The declarations lay the foundation for a possible escalation in trade hostilities, provided that Trump adheres to what the ruling Communist Party’s official journal referred to as “a so-called ‘final deadline’.” The average charge imposed by China on US goods is 32.6 percent, whereas the average tariff imposed by the US on Chinese exports is currently 51.1 percent.The Peterson Institute for International Economics claims that these levies are being applied nationwide by both countries. Regional economies considering tariff reduction agreements with the United States that bar China from their supply chains were also criticized in the research.
Vietnam reached a deal last week to lower tariffs from 46% to 20% on commodities “transshipped” across its borders, which usually come from China and will be subject to a 40% levy. The publication said, “China firmly opposes any side striking a deal that sacrifices Chinese interests in exchange for tariff concessions and should such a scenario occur, China will reject it and will respond decisively to safeguard its legitimate interests.”
