Tensions have flared once again between the United States and China, with Beijing accusing Washington of “severely violating” the trade truce reached last month in Geneva. The Chinese Ministry of Commerce released a strongly worded statement on Monday, warning that China will take “strong measures” to defend its interests if the US continues to backtrack on commitments.
According to the Ministry, US actions have “seriously undermined” the mutual agreement made in May, under which both nations agreed to reduce tariffs on each other’s imports. Under that truce, the US had lowered its tariffs on Chinese goods from 145% to 30%, while China reduced its own retaliatory tariffs on American products from 125% to 10%.
The ministry also accused the US of violating consensus reached during a January phone call between Chinese President Xi Jinping and US President Donald Trump, where both leaders had reaffirmed their commitment to de-escalate trade tensions.
These accusations follow comments made by President Trump last Friday, claiming that “China had totally violated its agreement with us,” though he did not provide specifics. US Trade Representative Jamieson Greer later clarified that China had failed to remove certain non-tariff barriers as outlined in the Geneva deal.
Beijing outlined several US actions it considers violations of the agreement. These include restrictions on the sale of computer chip design software to Chinese firms, warnings issued against the use of Huawei-manufactured chips, and the cancellation of student visas for Chinese nationals. Chinese officials have called these moves provocative and inconsistent with the spirit of recent negotiations.
Despite rising tensions, two senior White House officials suggested over the weekend that further high-level talks could take place soon. Treasury Secretary Bessent told CBS News that remaining details of the trade agreement could be resolved once Trump and Xi speak directly, although no date has been confirmed. Similarly, National Economic Council Director Kevin Hassett said both leaders had “expressed a willingness to talk” and were expected to do so within the week.
“The bottom line is that we’ve got to be ready in case things don’t happen the way we want,” Hassett added, indicating that the administration is preparing for all possible outcomes.
Meanwhile, President Trump has announced another round of tariff increases, doubling US tariffs on steel and aluminium imports from 25% to 50%, effective Wednesday. Speaking at a campaign rally in Pittsburgh, Pennsylvania, he justified the move as a strategy to revitalise America’s steel industry, boost domestic production, and reduce dependency on Chinese imports.
With both nations accusing each other of betrayal and posturing for domestic audiences, the path forward remains uncertain. While diplomatic channels appear open, the risk of a renewed trade war looms large—one that could have ripple effects across global markets.
Melissa Enoch
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