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Trump locks horns with China, trade tensions escalate

Potential Trade Agreement Dispute - Trump and China Engage in Spats

Following Trump's condemnation, China's Ministry of Commerce responded by accusing the U.S. of...
Following Trump's condemnation, China's Ministry of Commerce responded by accusing the U.S. of failing to meet the terms of the interim trade agreement, amid ongoing trade conflicts (Archive photo). (Picture on file). [Photo provided]

Heated Trade War: Tensions Escalate as Trump and China Trade Verbal Blows

Tension over Trade Agreement: Trump and China Butt Heads - Trump locks horns with China, trade tensions escalate

Get ready for some international drama! The trade game between China and USA is heating up, and the two superpowers have returned to the battlefield of harsh words. After US President Donald Trump accused China of failing to comply with trade agreements made in Geneva a fortnight ago, China has fired back with a strong rebuttal.

The US administration has imposed more discriminatory sanctions against China since the Geneva talks, as per the Chinese Ministry of Commerce. These sanctions include measures that tighten control over the sale of Artificial Intelligence chips and chip design software to China, as well as the revocation of visas for Chinese students in the USA.

Instead of admitting their own transgressions, the American side is unjustly accusing China of going back on the agreed-upon terms, the ministry added.

Trump's Aim

Remember the trade standoff between China and USA that kicked off in May 2025 in Switzerland? The two powers agreed to temporarily reduce their mutual tariffs in a bid to temporarily cool the tension. As per a joint statement from the world's largest economies, this agreement intended to slash tariffs by 90 days. The plan included reducing US tariffs on Chinese imports from 145% to 30%, while China's tariffs on imports from the USA would plummet from 125% to 10%.

At the time, President Trump described this concession as his primary objective and asserted that China agreed to it. However, the United States government's approach has recently taken a hostile turn towards China. "The sad news is that, not surprisingly, China has blatantly disregarded its proposal with us," Trump announced on Truth Social on Friday. "So much for playing nice!" he concluded. Trump did not provide examples of where he claimed China had deviated from the agreement.

Direct Dialogue?

Media sources have reported that, while China did reduce tariffs as agreed, other trade obstacles like restrictions on the export of rare earths persist unchanged.

During a press briefing in the Oval Office later that day, Trump simply stated that China had fallen short of honoring "a significant part of the agreement." He remained optimistic, though, that he would engage in a conversation with Chinese President Xi Jinping - "and hopefully, we will find a solution." No official confirmation has emerged from China regarding this potential chat.

  • China
  • Donald Trump
  • USA
  • Trade War
  • Beijing
  • US President
  • Barbs
  • Trade Battle
  • Geneva
  • Software

Insights:1. The U.S.-China trade dispute, which began in May 2025, has entered a new phase with stricter restrictions on AI chips and chip design software sales to China as well as the cancellation of visas for Chinese students in the USA.2. Despite these developments, the tariff reductions agreed upon by both countries as part of their recent negotiations have been implemented. However, restrictions on the export of rare earths remain unchanged, raising questions about full compliance with the trade agreement.

  1. In the midst of the heated US-China trade war, employment policies may become a crucial aspect in the economic battlefield, as both EC countries could potentially be affected by the revocation of visas for Chinese students in the USA, impacting employment opportunities and relationships between the two superpowers.
  2. As politics and policy-and-legislation continue to drive the conflict, general news outlets must closely monitor war-and-conflicts like the US-China trade war, examining not only its economic implications but also its effect on policy-and-legislation, such as employment policy, within each nation.

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