China Slams US ‘Bullying’ On Tariffs, Vows Response To Supply Chain Deals

Beijing has issued a sharp warning to the United States, urging the Trump administration not to escalate trade tensions by reinstating suspended tariffs on Chinese goods next month. The message, delivered via an official editorial on Tuesday, also targeted regional economies considering trade arrangements with Washington that bypass China’s role in global supply chains.

The warning follows US President Donald Trump’s recent move to notify trade partners of increased tariffs, set to take effect from August 1, reported Reuters. The White House had previously delayed most of its April tariff hikes—retaining only a 10 per cent levy—to allow countries time to negotiate new deals with the United States. However, Trump has now signalled the possible reinstatement of steeper tariffs, particularly against China.

According to the Peterson Institute for International Economics, the average US tariff on Chinese exports currently stands at 51.1 per cent, while Chinese duties on American goods average 32.6 per cent. These figures represent nearly full coverage of bilateral trade between the two countries, the institute noted.

China Criticises 'Bullying' Tactics, Calls for Cooperation

With China facing tariffs exceeding 100 per cent if no agreement is reached by August 12, Beijing has reiterated its stance that dialogue is the only viable solution. “One conclusion is abundantly clear: dialogue and cooperation are the only correct path,” stated a commentary in the Communist Party’s flagship newspaper, People’s Daily.

The editorial, signed under the pseudonym "Zhong Sheng" or "Voice of China," criticised the tariffs as an act of “bullying.” It continued, “Practice has proven that only by firmly upholding principled positions can one truly safeguard one’s legitimate rights and interests.” The remarks suggest that any unilateral escalation by Washington could reignite the tariff conflict witnessed earlier this year.

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Supply Chain Realignments Under Scrutiny

China also expressed disapproval of emerging trade deals between the US and other Asian economies that could weaken its role in regional supply chains. The People’s Daily editorial specifically referenced Vietnam’s recent agreement with the US, which reduced tariffs to 20 per cent from 46 per cent, while transshipped goods—mainly originating from China—will be taxed at 40 per cent.

“China firmly opposes any side striking a deal that sacrifices Chinese interests in exchange for tariff concessions,” the paper said. “If such a situation arises, China will not accept it and will respond resolutely to protect its legitimate interests.”

With both sides treading cautiously ahead of the August deadline, traders and global investors remain watchful. Whether the temporary ceasefire results in a sustainable resolution or another chapter of economic confrontation remains uncertain.

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