'Reserves right to act': China warns of countermeasures as US weighs 7.5% tariff over 'overcapacity'

China has warned of potential countermeasures if the United States imposes new tariffs based on an investigation into alleged excess industrial capacity, as trade tensions persist between the two nations despite their recent trade truce. According to a Bloomberg report, the Chinese Commerce Ministry spokesperson, Huang Ling, reiterated Beijing's opposition to the US investigation in the probe, claiming Washington launched it under the pretext of overcapacity.

Huang advised close monitoring and comprehensive assessment of subsequent US actions, reserving the right to take all necessary measures. The warning follows a Bloomberg report suggesting the US is considering a 7.5% tariff on Chinese products following the investigations. This move would revive President Donald Trump's protectionist trade policies, which were set back by the US Supreme Court overturning previous import tariffs.

The proposed tariff would also align with a level Beijing previously agreed upon during trade negotiations. China's warning emerges despite efforts by Beijing and Washington to maintain a trade truce. Chinese Foreign Minister Wang Yi urged the US to restore bilateral relations during a meeting with US Ambassador David Perdue, accusing Washington of imposing negative measures on unfounded grounds.