President Donald Trump on Friday accused China of violating a two-week-old agreement to roll back tit-for-tat tariffs, signaling a potential return to escalating trade hostilities between the world’s two largest economies.
Under the May deal struck in Geneva, both sides agreed to suspend a portion of their punitive duties for 90 days earlier this month.
Trump said on Friday in a Truth Social post that tariffs had left China in “grave economic danger,” before the countries had made a “fast deal.”
However he said China had “totally violated its agreement with us,” without explaining how.
US Trade Representative Jamieson Greer later clarified that while China had removed the agreed tariffs, it had stalled on rescinding other trade restrictions levied on the US.
He said when China responded to the US’s tariffs with its own, they also put in place countermeasures such as putting some US companies on blacklists and restricting the flow of rare earth materials.
“They removed the tariff like we did but some of the countermeasures they’ve slowed on,” Ambassador Greer said.
He added the US had been closely watching China to make sure it would comply with the deal and they were “very concerned” with the progress.
Greer also mentioned that “The United States did exactly what it was supposed to do and the Chinese are slow-rolling their compliance which is completely unacceptable and has to be addressed.”
Beijing is yet to respond to the assertions. On Friday, its foreign ministry had declined to respond to comments made by US Treasury Secretary Scott Bessent that trade talks with China had become “a bit stalled.”
Bessent had also mentioned that he “thinks that given the magnitude of the talks, given the complexity, that this is going to require leaders of both the countries to weigh in with each other.”
Trump’s global tariff regime was dealt a blow on Wednesday following a ruling that he had exceeded his authority. His plans have been temporarily reinstated after the White House appealed the decision.
This week, his administration also moved to revoke visas for an estimated 280,000 Chinese students in the United States. Meanwhile, a federal court ruled Trump had overstepped his authority on tariffs a decision temporarily stayed after a White House appeal.
Bessent said talks on a further deal had lost momentum, but stressed they were continuing.
“ I believe that we will be having more talks with China in the next few weeks and I believe we may at some point have a call between the president and Chinese President Xi Jinping,”Bessent said on Thursday.
He added the pair had “a very good relationship” and he was “confident that the Chinese will come to the table when President Trump makes his preferences known.”
Under the deal struck earlier this month, the US lowered tariffs imposed on goods from China from 145% to 30%.
China’s retaliatory tariffs on US goods dropped from 125% to 10%.
The US President has argued imposing tariffs on foreign goods would encourage US consumers to buy more American-made goods, bringing back manufacturing jobs while increase the amount of tax revenue raised.
They have been used by the Trump administration as leverage in negotiations as it seeks to reduce trade deficits with other nations.
A delegation from Japan are continuing trade talks with their US counterparts in Washington on Friday.
Bessent said “a couple” of US trade deals were “very close,” but “a couple of them are more complicated.”
Trump’s tariff regime remains in the balance following the decision by the US Court of International Trade, which ruled that Trump had overstepped his power by imposing the duties.
Some analysts believe it will mean countries will be less likely to rush to secure trade deals with the US.
A federal appeals court has granted a bid from the White House to temporarily suspend the lower court’s order, which Trump described as “horrific.”
“Hopefully, the Supreme Court will reverse this horrible, Country sic threatening decision, QUICKLY and DECISIVELY,” he wrote on his Truth Social platform.
Erizia Rubyjeana
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