China warns Trump on tariffs, threatens retaliation on supply chain deals
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
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 article was signed "Zhong Sheng", or "Voice of China", a term the paper uses to express views on foreign policy.Reiterating Beijing's view that Trump's tariffs amount to "bullying", the paper added, "Practice has proven that only by firmly upholding principled positions can one truly safeguard one's legitimate rights and interests."The remarks set the stage for another round of tariff war should Trump stick to what the ruling Communist Party's official daily said was "a so-called 'final deadline.'"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.The paper also took a swipe at regional economies that are considering striking tariff reduction deals with the United States that cut China out of their supply chains.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."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
14 minutes ago
- News18
Trump Snaps At Reporter Over Jeffrey Epstein Query: ‘You Are A Waste Of Time'
Last Updated: Donald Trump lashed out at a reporter over questions about Jeffrey Epstein, calling it a distraction from real issues. US President Donald Trump lashed out at a reporter after being asked about the resurfacing controversy surrounding Jeffrey Epstein, calling the journalist a 'waste of time" and slamming the question as a distraction from 'real issues." At a White House press conference, Donald Trump bristled when asked about renewed scrutiny over the Jeffrey Epstein case following a public spat with tech mogul Elon Musk. 'Are you still talking about Jeffrey Epstein? This guy we've been talking about for years," Donald Trump said, visibly irritated, adding, 'We have Texas and other issues, and people are still talking about this creep guy- that is unbelievable. You are a waste of time." 'I can't believe you are asking a question about him at a time like this- when we're having some of the greatest success and tragedy with what happened in Texas. It seems like a disaggregation," he added, referencing ongoing flood relief efforts in the state and his recent military initiative Operation Midnight Hammer. Donald Trump's remarks come amid fresh political friction over the Jeffrey Epstein case, fueled by a dramatic public fallout with Elon Musk, who last month accused the US President of being 'in the Epstein files". Elon Musk later walked back his claims, deleting the post and admitting he had 'gone too far." In response, Donald Trump shared a statement from David Schoen, a former Epstein attorney, asserting that the US President had never been implicated in any criminal activity. A Department of Justice memo released this week reiterated that Jeffrey Epstein died by suicide while in federal custody in 2019 and stated that no verified 'black book" of clients or credible evidence of blackmail had been uncovered. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated! view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
42 minutes ago
- Time of India
Textiles exporters face fresh trade uncertainty amid Trump's latest announcements
NEW DELHI: US President 's latest tariff announcements have resulted in fresh uncertainty, with buyers expected to go slow on new orders. While textiles exporters seem to have got an advantage over Bangladesh, which has been slapped with 35% duty by Trump, industry is keeping close tabs on India's bilateral trade deal with the US as the American president has claimed the agreement with Vietnam allows him to impose a 20% tariff, although there may be product-specific concessions. Tired of too many ads? go ad free now In any case, the final word is not out on where tariffs settle in the coming weeks, with countries, including Bangladesh, once again rushing to Washington to rebalance the equations. "We need to watch how tariffs move. Buyers are a little confused at the moment," said V Elangovan, managing director of Tirupur-based SNQS International. What is adding to the complications is China. "Retailers have to fill their shelves. Last week, our merchandisers were in Shanghai, we could not compete because the Chinese were quoting better prices this year than last year. It is not clear how they can do so when the tariff for them is higher. We need more hand-holding from govt," he added. Govt and industry has been pushing for zero duty for garments and home textiles, where Indian products are competitive, although it is unlikely even if a trade deal is worked out as the Trump administration has refused to remove the 10% baseline tariff applicable on all countries. At 10%, Indian exporters are seen to be better off than rivals, provided subsidies are not doled out to Chinese manufacturers. In natural garments, where India has traditional strength, the cost disadvantage is relatively small, 3-4%. However, in synthetic garments, the gap widens to 10-11% due to higher production costs, Apparel Export Promotion Council (AEPC) said. "India, even with the existing reciprocal tariff rate (26% announced in April), will gain in export competitiveness vis-a-vis major garment exporting competing countries. Tired of too many ads? go ad free now Besides, we are quite hopeful of India striking a favourable trade deal which will further improve the competitiveness of India's apparel exports in all important US market... even a moderate reduction in the reciprocal tariff to around 15% could significantly improve our competitiveness across both natural and synthetic garment categories, thereby opening infinite export possibilities for India amid shifting global sourcing trends," said AEPC CEO Mithileshwar Thakur. With current tariff levels - India at 26%, Vietnam at 20%, and Bangladesh at 35% - India is seen to be competitive against Bangladesh in natural garments but faces pressure in the synthetics segment. "It is looking good for us and a trade deal will help," said K M Subramani, president of Tirupur Exporters' Association. The big question is the ability of Indian garment makers to manufacture on a scale, especially given their reluctance to invest in capacity addition.
Mint
44 minutes ago
- Mint
Donald Trump yet again dismisses Elon Musk's ‘America Party', says, ‘it will help us'
US President Donald Trump brushed off tech billionaire Elon Musk's new political party, suggesting it would actually boost his own campaign—just two days after dismissing the idea as 'ridiculous.' 'I think it will help us. It will probably help,' Trump said on July 7 when asked about Musk's formation of the 'America Party,' a political movement Musk says will challenge both Republicans and Democrats. 'Third parties have always been good for me. I don't know about Republicans, but for me,' added Trump. Speaking to reporters on July 7, Trump took direct aim at Musk's announcement, dismissing the concept outright. 'I think it's ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system,' Trump said. 'Starting a third party just adds to confusion.' He added, 'It really seems to have been developed for two parties. Third parties have never worked, so he can have fun with it, but I think it's ridiculous.' Later, Trump amplified his criticism on his Truth Social platform, writing that Musk had gone 'completely off the rails.' 'I'm saddened to watch Elon Musk go completely 'off the rails', essentially becoming a TRAIN WRECK over the past five weeks,' Trump posted, while again defending the two-party system as the only viable political structure in the US. Musk, who owns the social media platform X, fired back with a mocking response to Trump's Truth Social comments: 'What's Truth Social?" Musk unveiled his 'America Party' on July 5, citing fierce opposition to Trump's $5 trillion tax and spending bill, which includes a major debt ceiling hike and rollbacks of climate-related incentives. 'When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,' Musk wrote on X. He added: 'Today, the America Party is formed to give you back your freedom.' Although still unofficial, Musk indicated that the new party would focus on unseating GOP lawmakers who voted for Trump's sweeping fiscal package. A poll posted by Musk on July 4 showed 65% of more than 1.2 million respondents supporting the creation of a third party. 'By a factor of 2 to 1, you want a new political party and you shall have it!' Musk wrote. Trump suggested that Musk's motivation may stem from specific provisions in the spending bill. 'He's probably upset because the Bill eliminates the ridiculous Electric Vehicle (EV) Mandate, which would have forced everyone to buy an Electric Car in a short period of time,' Trump said.
