China warned the Trump administration on Tuesday against reigniting the trade war by restoring tariffs on goods next month, as US President Donald Trump sent out letters to its trade partners that threaten increased tariffs from August 1 after he pushed the deal-finalisation deadline.
Beijing and Washington had reached a trade truce in June that was announced by Trump himself, but it waits to be seen if the fragile agreement with unclear details will last.
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China now has until August 12 to reach an agreement with the US for reinstating tariffs in a tit-for-tat war that started with Trump’s inauguration in January this year as the 47th President of the United States.
Vowing to “fight till the end”, China also warned other nations against striking deals with the US that cut China out of supply chains.
It’s official People’s Daily remarked in an observation on the latest round of exchanges between China and the US: "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."
Last week, Vietnam secured a tariff reduction from 46 per cent to 20 per cent with a deal for goods "transshipped" through it, typically originating from China, to be subjected to a levy of 40 per cent.
"One conclusion is abundantly clear: dialogue and cooperation are the only correct path," the paper said.
Currently, US tariffs on Chinese export goods stand at 51.1 per cent. On the other hand, average Chinese duty on US goods is 32.6 per cent, quotes the Peterson Institute for International Economics.
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