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China Warns Trump on Tariffs, Threatens Retaliation on Supply Chain Deals

CHINA, JUL 8 – China warned the U.S. against reinstating tariffs and threatened retaliation towards countries excluding it from supply chains, with U.S. tariffs on Chinese goods averaging 51.1%, the Peterson Institute said.

  • On July 7, 2025, President Donald Trump sent letters to 14 countries announcing new U.S. tariffs ranging from 25% to 40%, effective August 1.
  • These reciprocal tariffs follow a fragile trade framework reached by Washington and Beijing in June but face renewed tensions as the August 12 deadline approaches.
  • China’s official newspaper, People's Daily, condemned the tariffs as unilateral bullying, warned against sacrificing Chinese interests in deals, and opposed sideline agreements altering supply chains.
  • The tariffs affect imports from several countries including South Korea, Japan, and Vietnam, with Vietnam obtaining a reduction from 46% to 20%; however, products routed through Vietnam but originating in China are subject to a 40% tariff.
  • China will respond resolutely if Washington proceeds unilaterally, making the trade dispute's outcome uncertain and raising prospects of renewed tariff escalations.
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China warns Trump on tariffs, threatens retaliation on supply chain deals

China warned the Trump administration on Tuesday against reigniting trade tension by restoring tariffs on its goods next month, and threatened to retaliate against nations that strike deals with the United States to cut China out of supply chains.

·United Kingdom
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Newsweek broke the news in United States on Tuesday, July 8, 2025.
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