Beijing, China – Tensions between the United States and China have escalated once again, as Beijing accuses Washington of violating a recent trade agreement, signaling a potential return to a full-blown trade war.
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| (Photo by JIM WATSONPETER KLAUNZER/AFP/POOL/AFP via Getty Images) |
China’s Ministry of Commerce issued a strong statement on Monday, claiming the U.S. has "seriously breached" the tariff truce reached during high-level negotiations in Geneva last month. The ministry criticized recent U.S. actions, calling them a “severe violation” of the consensus agreed upon in both the Geneva meetings and a January phone call between President Xi Jinping and former U.S. President Donald Trump.
The ministry warned that Beijing will take decisive measures to safeguard its national economic interests if Washington continues down its current path.
U.S.-China Trade Agreement Under Pressure
The dispute follows comments from former President Donald Trump, who accused China last Friday of “completely violating the agreement”—though he did not provide specific evidence. However, U.S. Trade Representative Jamieson Greer later clarified that China failed to eliminate certain non-tariff barriers that were agreed upon under the deal.
Under the May trade truce, both countries made significant tariff concessions:
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The U.S. reduced tariffs on Chinese imports from 145% to 30%.
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China, in turn, slashed its tariffs on U.S. goods from 125% to 10%.
These reductions were seen as a positive development in an otherwise strained trade relationship, though analysts warned at the time that the agreement appeared fragile.
China Points to Specific U.S. Violations
According to Beijing, the United States has already taken several actions that undermine the spirit and terms of the Geneva deal. These include:
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Halting the sale of advanced chip design software to Chinese firms.
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Discouraging global use of Chinese-made semiconductors, particularly those from tech giant Huawei.
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Revoking student visas for certain Chinese nationals studying in the U.S., particularly in science and engineering fields.
These moves, China argues, represent unilateral steps that go against the principles of fair trade and mutual respect agreed upon just weeks ago.
Diplomatic Efforts Continue Amid Rising Tensions
Despite the renewed strain, senior U.S. officials remain cautiously optimistic. Treasury Secretary Bessent, speaking to CBS News, said he expects the details of the trade agreement to be "resolved" during a direct conversation between Xi and Trump, though no date has been confirmed for that discussion.
Similarly, National Economic Council Director Kevin Hassett told ABC News that both sides have shown “a willingness to engage” and indicated that a presidential call could take place within the week.
“We need to be prepared in case things don't go as planned,” Hassett added, acknowledging the high stakes of the ongoing negotiations.
U.S. Raises Tariffs Again, Citing National Security
Adding fuel to the fire, President Trump recently announced that the U.S. will double existing tariffs on steel and aluminum imports, raising them from 25% to 50%. The new rates are set to take effect Wednesday and are aimed at boosting domestic steel production and reducing dependency on foreign suppliers, especially China.
Speaking at a rally in Pittsburgh, Pennsylvania, Trump framed the tariff hike as a move to “protect American industry”, claiming it will support local jobs and enhance national supply chain security.
Conclusion: Trade Talks at a Crossroads
As both nations prepare for potential high-level talks, the atmosphere remains fraught with uncertainty. While initial progress in Geneva was seen as a breakthrough, the renewed accusations and retaliatory actions suggest the U.S.-China trade conflict is far from resolved.
Whether or not Presidents Xi and Trump can rebuild trust and stabilize relations will likely determine the direction of global trade in the coming months.
Key Points:
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Huawei U.S. restrictions
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