China’s Ministry of Commerce has accused the United States of “severely violating” the trade truce agreed upon last month, warning that it will take strong measures to defend its interests.
The spokesperson said Washington has “seriously undermined” the agreement reached during talks in Geneva, where both countries agreed to lower tariffs on imports from each other. The spokesperson also emphasized that US actions violate the consensus reached in a January phone call between China’s leader Xi Jinping and President Donald Trump.
The accusations come after President Trump claimed on Friday that China had “totally violated its agreement with us.” While the President did not provide details, US Trade Representative Jamieson Greer later said China had failed to remove non-tariff barriers as outlined in the deal.
Details of the Geneva Trade Truce
Under the May agreement in Geneva, the US agreed to reduce tariffs on Chinese goods from 145% to 30%, while China lowered retaliatory tariffs on US goods from 125% to 10%.
On Monday, Beijing cited specific US violations, including halting sales of computer chip design software to Chinese firms, discouraging use of chips from Chinese tech giant Huawei, and canceling visas for Chinese students.
The trade truce surprised many analysts, as it showed that despite significant differences, Washington and Beijing can reach agreements during face-to-face talks. However, with rising rhetoric and renewed accusations, the fragility of the current truce is apparent, signaling challenges ahead in negotiating a lasting trade deal.
Prospects for Upcoming Talks
Despite the tension, two top White House officials suggested that President Trump and Xi Jinping could hold talks soon. Treasury Secretary Bessent told CBS News that key details will be “ironed out” after their conversation, though the timing remains uncertain.
National Economic Council Director Kevin Hassett said on ABC News that talks are expected this week, with both sides showing a willingness to engage. “The bottom line is that we’ve got to be ready in case things don’t happen the way we want,” Hassett added.
China prefers lower-level negotiations before escalating matters to the presidents.
Last week, President Trump announced the US would double tariffs on steel and aluminium imports from 25% to 50%, effective Wednesday. Speaking at a rally in Pittsburgh, he stated this move aims to boost the domestic steel industry and reduce dependence on China.
Author’s Opinion
The escalating tariff tensions underscore how delicate international trade agreements can be, especially between major powers like the US and China. While accusations fly on both sides, it’s clear that ongoing dialogue remains crucial. Overly aggressive tariff hikes risk harming global economic stability and may ultimately hurt domestic industries dependent on supply chains. A balanced approach, with continued negotiations at various levels, offers the best hope for progress.
Featured image credit: Heute
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