Economics

China Warns of Strong Retaliation as US Escalates Trade Pressure

China has sharply criticized the United States’ latest move to ramp up tariffs, describing it as economic bullying that threatens to plunge the world’s two largest economies back into a damaging trade war.

On Tuesday, Beijing issued a clear warning to the Trump administration, cautioning that any renewed effort to impose punitive tariffs on Chinese goods would be met with firm countermeasures. This time, China signaled it would also target other countries that side with Washington to isolate Chinese supply chains.

The tensions flared up again despite a tentative trade deal the two countries reached in June. That agreement had briefly restored a fragile ceasefire after months of tit-for-tat tariffs. But uncertainty returned after President Donald Trump formally notified trading partners this week that higher tariffs will take effect on August 1.

According to Chinese officials, the US tariffs could exceed 100% on some goods if no resolution is reached by August 12. Trump had previously delayed the increases in April, giving other nations time to negotiate. However, those talks have not eased the standoff.

China’s state-run newspaper, the People’s Daily, ran a commentary under the byline “Zhong Sheng,” which signals an official government stance. The piece condemned the United States for “weaponizing” its economic influence and undermining fair trade. It described the approach as “blatant bullying” and insisted that only dialogue and cooperation can lead to a sustainable solution.

Beijing also criticized neighboring countries for making deals with Washington that lower their tariffs in exchange for imposing higher duties on Chinese products. Vietnam, for example, recently agreed to reduce tariffs on US goods transshipped through its ports while sharply increasing levies on Chinese-origin items.

“China firmly opposes any side striking a deal that sacrifices Chinese interests in exchange for tariff concessions,” the commentary declared. “If such a situation arises, China will respond resolutely to protect its legitimate interests.”

The Peterson Institute for International Economics estimates that the average US tariff on Chinese exports now stands at over 51%, while China’s duties on American goods are about 33%.

With August deadlines fast approaching, many analysts warn that a new wave of tariffs could further disrupt global supply chains and unsettle financial markets already strained by geopolitical tensions.

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