China will retaliate if President Donald Trump's administration restores huge tariffs on its goods, its government newspaper has said.
An op-ed in the official People's Daily newspaper disparaged Trump's "bullying" tariffs and said it would take action against countries that strike deals with the U.S. to cut China out of supply chains.
"One conclusion is abundantly clear: dialogue and cooperation are the only correct path," the newspaper said. The article was signed "Zhong Sheng," or "Voice of China," which is a term used to express views on foreign policy.
Newsweek has contacted the White House for comment.
Why It Matters
The warning by the government newspaper suggests global repercussions for China's trade dispute with the U.S. China has until August 12 to reach a deal with the U.S. to keep Trump from reinstating additional import curbs imposed during tariff exchanges in April and May.
China had been initially singled out by Trump with tariffs exceeding 100 percent. In June, Washington and Beijing agreed to a trade framework but its details are unclear and there is uncertainty over whether it will unravel.
What To Know
The Trump administration said it was sending out letters to trading partners before Wednesday, the day his so-called reciprocal tariffs on dozens of countries were scheduled to snap back to the levels he had announced in early April.
The president posted screenshots of form letters dictating new tariff rates to the leaders of 14 countries ranging from 25 percent to 40 percent.
But the Chinese government paper said Trump's tariffs amounted to "bullying," adding that "only by firmly upholding principled positions can one truly safeguard one's legitimate rights and interests."
Trump signed an executive order to delay the date when his "reciprocal" tariffs are set to snap back higher to August 1, teasing that the U.S. will consider adjusting the new levies, depending on the country's relationship with Washington.
The People's Daily op-ed criticized regional economies that are considering striking tariff reduction deals with the United States that cut China out of their supply chains.
Vietnam has secured a tariff reduction to 20 percent from 46 percent and goods "transshipped" through it, generally originating from China, facing a 40 percent levy, according to Reuters.
The average U.S. tariff on Chinese exports now stands at 51.1 percent, while the average Chinese duty on U.S. goods is 32.6 percent, with both sides covering all their trade, the Peterson Institute for International Economics said, per Reuters.
What People Are Saying
People's Daily, China's government newspaper: "China firmly opposes any side striking a deal that sacrifices Chinese interests in exchange for tariff concessions.. If such a situation arises, China will not accept it and will respond resolutely to protect its legitimate interests."
What Happens Next
Trump's social media posts and the Chinese newspaper op-ed set the stage in the coming weeks for another round of a tariff war if the U.S. president sticks to the August deadline he has set.
