Summary:
China warns the Trump administration against reinstating tariffs on its goods next month, threatening to retaliate against nations that strike deals with the US to cut China out of supply chains. The US and China agreed to a trade framework in June, but many details are unclear, leaving traders and investors watching for a lasting detente. Current average US tariffs on Chinese exports stand at 51.1%, while the average Chinese duty on US goods is 32.6%. China opposes any deal that sacrifices its interests in exchange for tariff concessions.
What This Means for You:
- Businesses dealing with US-China trade should stay informed about the evolving situation to make informed decisions.
- Consider supply chain diversification to reduce reliance on any single market or trade partner.
- Stay updated on changing tariff rates and adjust your strategies accordingly.
- Monitor your industry’s reaction and expert opinions to help navigate potential risks and opportunities.
Original Post:
BEIJING (Reuters) -China warned the Trump administration on Tuesday against reigniting trade tension by restoring tariffs on its goods next month, and threatened to retaliate against nations that strike deals with the United States to cut China out of supply chains.
Washington and Beijing agreed to a trade framework in June that restored a fragile truce, but with many details still unclear, traders and investors on both sides of the Pacific are watching to see if it will unravel or lead to a lasting detente.
On Monday, President Donald Trump began notifying trade partners of sharply higher U.S. tariffs from August 1, after he delayed all but 10% of his April duties on most countries to give them time to strike deals with the world’s largest economy.
China, initially singled out with tariffs exceeding 100%, has until August 12 to reach an agreement with the White House to keep Trump from reinstating additional import curbs imposed during tit-for-tat tariff exchanges in April and May.
“One conclusion is abundantly clear: dialogue and cooperation are the only correct path,” the official People’s Daily said in a commentary, referring to the exchanges in the current round of China-U.S. trade tension.
The average U.S. tariff on Chinese exports now stands at 51.1%, while the average Chinese duty on U.S. goods is 32.6%, with both sides covering all their trade, the Peterson Institute for International Economics said.
Last week, Vietnam secured a tariff reduction to 20% from 46% with a deal for goods “transshipped” through it, typically originating from China, to be subjected to a levy of 40%.
“China firmly opposes any side striking a deal that sacrifices Chinese interests in exchange for tariff concessions,” the paper said.
“If such a situation arises, China will not accept it and will respond resolutely to protect its legitimate interests.”
(Reporting by Joe Cash; Editing by Clarence Fernandez)
Extra Information:
Understanding the complexities of international trade and tariffs can be challenging. Check out these resources to help you stay informed:
- The Office of the United States Trade Representative provides background information on US trade agreements and related issues.
- China Briefing provides news and analysis on doing business in China.
People Also Ask About:
- What is the current status of the US-China trade talks?
Negotiations are ongoing, as both sides agreed to a trade framework in June. - How has the US trade war with China affected global supply chains?
There has been a notable impact on businesses and supply chains, as some firms look to diversify their operations or sources. What tariffs has the US imposed on Chinese goods? - What actions has China taken in response to US tariffs?
China has threatened to retaliate against nations that strike deals with the US to cut China out of supply chains. - What is the role of the People’s Daily in China’s foreign policy and trade affairs?
The People’s Daily is the official newspaper of China’s ruling Communist Party and frequently voices the official tone on various issues, including foreign policy and trade.
Currently, the US imposes an average 51.1% tariff on Chinese exports.
Expert Opinion:
“As the US-China trade war continues to evolve, businesses must remain agile and monitor the situation closely. Expanding threats and countermeasures from both sides can directly impact supply chain efficiency and costs. Engaging experts to analyze the implications and advise on adaptive strategies is critical.” -Steven Shields, Senior Trade Advisor, Asia Pacific Consulting Partners
Key Terms:
- US-China trade war
- Tariffs
- Trump’s administration
- Supply chains
- Trade agreements
- International trade
- US-China trade tension
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