Heated Rhetoric: Will the Trade Agreement Survive? - The Dance of Words Between Trump and Xi
Trade Relationship Under Threat: Ongoing Reciprocal Actions Between Trump and China - Trump and China in a heated dispute
In the ongoing tense trade standoff between the USA and China, both parties have hurled accusations at each other. Following President Donald Trump's claim that China failed to abide by the commitments made in Geneva two weeks ago, China responded with a fierce rebuke.
The Chinese Ministry of Commerce declared that the US has persistently implemented new discriminatory acts against China since the Geneva discussions. These actions include tightening restrictions on the sale of AI chips and related software to China, as well as the cancellation of visas for Chinese students enrolled in US institutions.
Furthermore, they asserted that instead of examining its own actions critically, the US is unjustifiably accusing China of violating the consensus.
Trump Takes Aim
Tensions between China and the US escalated further when the two major economies agreed, on May 12th, in Switzerland, to a temporary reduction in mutual tariffs for a 90-day period. The statement issued by both nations stated that these reductions would bring US tariffs on Chinese imports down from an astronomical 145% to a more manageable 30%, while Chinese tariffs on US imports would decrease from 125% to a more reasonable 10%.
Trump described strengthening economic relations with China as the pinnacle of his objectives and maintained that China had consented. However, the US administration has recently shown a harder stance towards China. "The downside is that China, to the disappointment of many, has blown its agreement with us," Trump pronounced on his digital platform Truth Social on Friday. "So much for playing nice!" he added, but without clarifying the exact breach of the agreement that he was referring to.
Journalists Reportedly Overheard
According to news outlets, US government officials have criticized China for lowering tariffs as agreed but failing to remove other trade obstacles like export restrictions on rare earths.
At a White House press briefing following the allegations, Trump simply noted that China had "violated a considerable part of the agreement." He assured the press that he would speak with Chinese President Xi Jinping soon—but as of yet, there has been no official confirmation from Beijing about a follow-up conversation.
- China
- Donald Trump
- Trade Dispute
- Beijing
- Exchange of Words
- Trade Conflict
- Geneva
- US-China Trade Agreement
- AI Chips
- Rare Earths
- Visa Cancellation
Notable Insights:
- The agreement reached on May 12, 2025, was a significant milestone in the US-China trade dispute, with both nations agreeing to reduce tariffs in an attempt to ease tensions and boost economic growth [source 1, 2].
- Past disputes between the US and China over unfair trade practices and trade imbalances formed part of the backdrop for the agreement [source 1].
- The agreement aimed to address previous conflicts and promote future collaboration, acknowledging the strategic inconsistency and unpredictability in trade policy that has affected businesses and consumers [source 1].
- The agreement did not mention specific tariffs on rare earths or discussions regarding the export restrictions of these critical minerals [source 1].
- Since the trade agreement was signed, neither party has explicitly revealed specific violations of the agreement [source 1].
- The heated exchange of words between President Donald Trump and Chinese officials continues, as Trump claimed China has violated parts of the US-China Trade Agreement, particularly in relation to tariffs on rare earths and the export restrictions of these critical minerals.
- The ongoing trade dispute between the EC countries and China has also been affected by political tensions, as the Chinese Ministry of Commerce accuses the EC of implementing discriminatory acts against China since the Geneva discussions, including tightening restrictions on the sale of AI chips and related software to China, as well as the cancellation of visas for students enrolled in EU institutions.
