The seeds of conflict between China and the United States (US) have been rekindled when Beijing warned US President Donald Trump not to proceed with plans to reimpose tariffs on Chinese products starting August 1.
The warning was voiced in a scathing statement published in the People’s Daily, the official newspaper of the Chinese Communist Party. In the statement, the US tariffs of more than 100% on Chinese products are described as a form of “trade bullying”.
Beijing also rejected the unilateral approach by the White House, while insisting that only dialogue and cooperation can resolve the escalating tensions.
Previously, China and the US agreed to form a trade framework in June, but Trump’s statement on Monday to reimpose high tariffs on trading partners starting August has reignited concerns about the risk of a new tariff war.
China has also threatened to take action against any country that colludes with the US to remove China from the global supply chain, such as Vietnam, which reached a tariff reduction agreement with the US and caused the possibility of China’s interests being sacrificed in such agreements.
According to the Peterson Institute for International Economics, the average US tariff on Chinese exports has so far reached 51.1%, while Chinese tariffs on US goods are around 32.6%.
The latest tensions are expected to further increase uncertainty in global trade, putting pressure on regional economies that depend on the stability of relations between the two world powers.
