China has warned US President Donald Trump against reigniting trade tensions, threatening retaliation against nations that join US-led efforts to exclude Beijing from global supply chains. The warning comes just weeks after Washington and Beijing reached a vague trade framework in London aimed at easing friction.
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Trump issued 14 letters to world leaders on Monday, threatening tariffs ranging from 25% to 40%, with a temporary delay in implementation until 1 August. Countries affected include Japan, South Korea, Malaysia, and South Africa. Notably, Vietnam secured a deal reducing its threatened tariffs to 20%, though a higher 40% rate remains on transshipped goods originating from China.
The European Union is negotiating for exemptions under a proposed 10% universal tariff. Meanwhile, Canada has scrapped its digital services tax, reopening trade talks with the US, with hopes for a mid-July deal.
Beijing, facing potential tariffs exceeding 100%, has until 12 August to finalise an agreement with Washington. In an editorial, the state-run People's Daily urged that "dialogue and cooperation are the only correct path", signalling China's preference for diplomacy but readiness to retaliate.
Investors remain cautious as the possibility of renewed trade brinkmanship looms.
Source: www.finance.yahoo.com
