China says it will retaliate on unfavorable deals after Trump warns Asia of higher tariffs

Chinese state media warned the Trump administration against striking deals that sideline China, after the president announced that Asian countries would face higher tariffs starting on Aug. 1.

HONG KONG — Chinese state media warned the Trump administration Tuesday against striking deals that sideline China, after the president announced that Asian countries would face higher tariffs starting Aug. 1, unless other arrangements are agreed on before then.

“If such situations arise, China will not accept them and will resolutely take countermeasures to safeguard its legitimate rights and interests,” the People’s Daily, a state-run newspaper, said in a commentary.

President Donald Trump said there would be 25% import tariffs on U.S. allies South Korea and Japan, 36% on Thailand and Cambodia, 35% on Bangladesh, 32% on Indonesia, 40% on Myanmar and Laos, and 25% on Malaysia.

While Trump did not explicitly name China in the tariff announcement, he did issue an overall warning: If the goods are being transshipped — meaning they originate in one country, typically China, and are shipped to a second country before being sent to the U.S. — these middleman countries could even face higher duties. He did not specify what that increase might be.

Asia has experienced a surge in imports from China in recent weeks, growing at an average of 21.7% year over year in March-April, up from 17.3% in February, according to an analysis last month by the global investment bank Nomura, which said transshipments were flowing through Vietnam, Thailand, Malaysia and India.