Trump Accuses China of Violating Tariff Truce, Raising Trade War Concerns
US President Donald Trump has accused China of breaking a temporary trade truce agreed upon just weeks ago, signaling a potential escalation in tensions between the world’s two largest economies. The accusation, made via a post on his Truth Social platform on Friday, casts fresh doubt on ongoing efforts to stabilize fraught bilateral trade relations.
The surprising statement comes after Washington and Beijing had agreed earlier this month in Geneva to dial back tariffs for a period, reportedly 90 days, to allow negotiations for a more comprehensive trade deal. Under the terms discussed, US tariffs on Chinese goods were significantly reduced, reportedly from 145% to 30%, while China lowered its retaliatory tariffs on US imports from 125% to 10%.
Trump claimed his prior tariffs had put China in “grave economic danger,” suggesting he agreed to the truce to help them stabilize. He stated that China had quickly returned to “business as usual” following the deal. However, he then declared China “HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” adding, “So much for being Mr. NICE GUY!”
What Was the Alleged Violation?
While President Trump did not specify the nature of the violation in his post, US Trade Representative Jamieson Greer provided more detail. Greer stated that China had not been removing non-tariff barriers as agreed.
These countermeasures, put in place by Beijing in response to earlier US tariffs, included actions like placing certain US companies on blacklists and restricting the flow of critical goods like rare earth materials. Greer indicated that although China had reduced tariffs like the US, they were “slow-rolling” compliance on other promised actions. He expressed “very concerned” about the progress, asserting that the US had upheld its end of the deal and China’s lack of compliance was “completely unacceptable.”
Trade Talks Reportedly Stalled
The accusation surfaces amidst acknowledgments from within the administration that trade negotiations have hit a snag. Treasury Secretary Scott Bessent told Fox News the day prior that talks with China had become “a bit stalled,” suggesting that involvement from the leaders of both countries might be necessary to move forward. Bessent noted that more talks were expected in the coming weeks, potentially including a call between President Trump and Chinese President Xi Jinping, citing their “very good relationship.”
Market Impact and Broader Context
The news sent immediate ripples through financial markets, with major indexes on Wall Street opening lower following Trump’s comments. Asian markets also saw declines, and the US dollar appeared shaky.
The instability in US-China trade relations adds another layer of uncertainty to the global economic outlook. The situation is further complicated by unrelated, volatile developments regarding the administration’s tariff powers, including a recent US trade court ruling that temporarily blocked most of Trump’s tariffs, only to be reinstated on appeal. Separately, the administration has also moved to aggressively revoke visas for certain Chinese students in the US.
As of Friday, Beijing had not issued an immediate official response to Trump’s specific allegations of violating the truce, though China’s embassy in Washington did not respond to requests for comment. The development highlights the ongoing complexity in the US-China relationship, a dynamic increasingly defined by economic competition and trade disputes that originated with Trump’s initial tariff actions in 2018.
References
- https://www.theguardian.com/business/live/2025/may/30/stocks-trump-tariffs-markets-inflation-news-business-live
- https://www.usatoday.com/story/news/politics/2025/05/30/trump-china-tariff-deal-violation-accusations/83941599007/
- https://www.mediaite.com/media/news/trump-accuses-china-of-totally-violating-tariff-truce-so-much-for-being-mr-nice-guy/
- https://www.scmp.com/news/china/diplomacy/article/3312523/trump-says-china-has-totally-violated-trade-deal-us
- https://en.ara.cat/economy/trump-accuses-china-of-violating-the-trade-agreement-to-lower-tariffs15396692.html
