China warned the Trump administration on Tuesday (July 8) against reigniting trade tensions by reinstating tariffs on Chinese goods starting next month. The warning came in response to President Donald Trump’s move to notify trade partners of sharply higher tariffs set to begin August 1, unless new agreements are reached.
In a strongly worded commentary published by the People’s Daily, the ruling Communist Party’s official mouthpiece, Beijing said, “One conclusion is abundantly clear: dialogue and cooperation are the only correct path.”
The article was signed under the pseudonym “Zhong Sheng”, a term used by the publication to signal official views on foreign policy.
“Final deadline” could reignite tariff war
Trump’s plan to restore tariffs—initially delayed in April—could unravel the fragile truce both sides reached in June. China now has until August 12 to strike a deal with the US to avoid the reimposition of duties that were paused following earlier tit-for-tat exchanges.
The People’s Daily commentary dismissed the looming tariff deadline as a “so-called ‘final deadline’”, and hinted at renewed retaliation if Washington moves forward unilaterally.
Tariffs at record levels
According to the Peterson Institute for International Economics, the current average US tariff on Chinese goods stands at 51.1%, while China imposes an average 32.6% duty on US products—both sides now covering the entirety of bilateral trade.
China continues to reject Washington’s approach, reiterating its stance that the tariffs amount to economic coercion. The People’s Daily stated: “Practice has proven that only by firmly upholding principled positions can one truly safeguard one’s legitimate rights and interests.”
Beijing slams regional trade deals that cut China out
The editorial also criticised regional economies—without naming specific countries—for considering deals with the US that reroute supply chains away from China. The move was seen as a threat to Beijing’s central role in global trade networks.
In a veiled reference to Vietnam, which recently secured a tariff reduction on US exports, the paper warned: “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.”
Vietnam reportedly agreed to a tariff cut from 46% to 20%, with goods transshipped from China to be levied at 40%, prompting strong objections from Beijing.
Trump slaps 25%–40% tariffs on imports from 14 countries, effective August 1
US President Donald Trump on Monday (July 7) sent formal letters to 14 countries, including Japan and South Korea, announcing new tariffs ranging from 25% to 40% on imports, effective August 1. The move marks a renewed push to force new trade deals before an earlier-imposed July 9 deadline.
The letters cited “significant trade deficits” and warned of penalties for any retaliatory tariff hikes, stating such moves would be matched “on top of the 25%” rate. However, the letters also left room for negotiation, with Trump saying the US would “perhaps consider an adjustment” if trade barriers are removed.
Trump offered these countries a chance to avoid tariffs if their firms build or manufacture products in the US.
And, if these nations impose retaliatory tariffs, the US would add that amount to the declared base tariff. Goods transshipped to evade tariffs will be subject to the higher rate.
US extends tariff suspension until August 1
The United States has extended the suspension of its reciprocal tariffs, initially announced on April 2, until August 1, offering temporary relief to Indian exporters and allowing more time for trade negotiations between New Delhi and Washington.
The suspension, which was set to expire on July 9, has been extended through an executive order issued by the White House. The order cited “additional information and recommendations from senior officials,” including updates on the progress of discussions with trading partners, as the basis for the extension.
“In light of this information, it is necessary and appropriate to extend the suspension effectuated by Executive Order 14266 until 12:01 a.m. EDT on August 1, 2025,” the White House said.
On April 2, President Trump had announced reciprocal tariffs on several countries, including a 26% duty on Indian goods, but implementation was paused for 90 days to give partners time to negotiate trade deals with the US.