China talks about retaliation if Trump reactivates tariff in August

Chinese official editorial points out “resolute” response to countries that exclude Beijing from agreements with the United States

China sent on Tuesday (8) a direct notice to the administration of President Donald Trump, warning against the possible resumption of tariffs on Chinese products from August. The statement was made through an editorial published in the DIARY OF THE PEOPLEthe official vehicle of the Chinese Communist Party, which also threatened retaliation against nations that celebrate agreements with the United States excluding China from global supply chains.

According to the text, “dialogue and cooperation are the only right way” so that the two largest economies in the world find a joint solution in the face of the commercial impasse that has been dragging on since 2018.

The newspaper criticized the United States’s intention to restructure productive chains to reduce the dependence of China. “Practice has proven that only firmly defending positions of principles can one really protect their rights and legitimate interests,” says the editorial.

The Chinese official publication accuses Washington of resorting to the tariff “bullying” and points out that the new tariff package can exceed 100% over certain Chinese products if the measure goes into force from August 1. The application had been postponed since April, but the US government has resumed notification of partner countries on the imposition of new barriers.

Beijing has until August 12 to negotiate with the White House and try to avoid reintroduction of tariffs. Analysts evaluate that the resumption of trade war can expand global economic instability and affect the recovery of various economies.

According to the Peterson Institute of International Economics, the United States today apply an average rate of 51.1% on products imported from China, while Chinese rate American products with an average of 32.6%.

The newspaper also directed criticism of the United States allies, stating that Beijing will react against regional agreements that seek to circumvent its presence in the global production routes.

“China is firmly opposed anywhere that closes an agreement that sacrifice Chinese interests in exchange for tariff concessions,” the text says. “If such a situation arises, China will not accept and respond resolutely to protect its legitimate interests.”

Among the examples cited is the recent agreement between Vietnam and the United States. The pact foresees the reduction of tariffs from 46% to 20% over certain products and exempts re -exported goods via Vietnamese territory – many of them originating from China – at an additional 40% rate. For Beijing, the action is an explicit attempt to circumvent its presence in international supply chains.

The growing tension also reflected in the financial markets. The main US bags fell on Monday, 7, with declines below 1%. Dow Jones, S&P 500 and NASDAQ indices ended the day down, pressured by the uncertainties around Washington’s commercial decisions and the possible Chinese response.

In the evaluation of economists and international observers, the risk of a new tariff climbing aggravates political and economic instability. Since the initial imposition of tariffs between the United States and China in 2018, bilateral trade has been the target of successive retaliation rounds, with direct impact on value chains on strategic sectors such as technology, energy and manufacturing.

Despite a provisional agreement signed last month between the two countries, points considered crucial are undefined. THE DIARY OF THE PEOPLE He classified the commitment as unstable and questioned the real American intention to cooperate. The newspaper also described the announcement of the “final deadline” of August 1 as a unilateral pressure tactic. “Time and facts will prove who is on the right track of history,” concludes the editorial.

China’s position occurs in a context of commercial alliance reorganization in Asia and Europe, and raises questions about the role of Beijing in the new international economic scenario. With the United States seeking to strengthen agreements with countries that are willing to reduce exposure to Chinese production, Beijing reacts firmly to try to avoid isolation.

With the approach of the deadline stipulated by Washington, the expectation will grow that the next few days will be decisive. If tariffs are actually reactivated, analysts provide for a new round of confrontation, with direct impact on global prices and productive chains of strategic sectors. The impasse reinforces the fear that the dispute between the United States and China is far from a definitive resolution.