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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 Tuesday, President Donald Trump began notifying Asian countries through form letters that higher U.S. tariffs ranging from 25% to 40% would take effect on August 1, 2025.
  • This action follows a fragile trade framework agreed by Washington and Beijing in June, with China given until August 12 to reach a deal preventing further tariff reinstatements.
  • China’s official newspaper, People’s Daily, criticized the tariffs as "bullying" and warned it would respond resolutely against any deals sacrificing Chinese interests or cutting China out of supply chains.
  • Trump’s tariffs threaten countries like South Korea, Japan, Thailand, and Malaysia with levies from 25% to 40%, while Apple faces pressure to shift manufacturing to the U.S. and diversify supply chains amid these escalating trade tensions.
  • The tariff notifications and Chinese warnings set the stage for a possible renewed trade war if no agreement is reached by August 12, potentially disrupting global supply chains and economic relations.
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Newsweek broke the news in United States on Tuesday, July 8, 2025.
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