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.

China on Tuesday warned the Donald Trump administration against reigniting trade tensions by reinstating tariffs on its goods from August, and threatened to retaliate against nations that strike deals with the United States to exclude China from their supply chains.

China, which initially faced tariffs above 100 per cent, agreed a framework for negotiations with the US in London last month that reduced the tariffs on both sides pending a broader agreement. Since then, China has allowed the export to the US of rare earth minerals while the US has eased restrictions on the export of some semiconductors.