United States President Donald Trump alleges China breaches the tariff truce agreement.
United States President Donald Trump has claimed that China has breached the two-week-old tariff truce the countries established, potentially rekindling the trade war between the world's largest economies.
The trade agreement reached during talks in Geneva two weeks ago had stipulated a temporary reduction in the escalating tariffs, which had peaked at 145%. Trump, on his Truth Social platform on Friday, asserted that China had violated the accord.
"I made a quick deal with China to save them from a negative situation, and I didn't want to see that happen. China, it seems, predictably for some, has completely violated its agreement with us," Trump stated. "So much for being the 'Nice Guy!'"
Evidently, tensions are escalating between the economic giants as progress in long-term negotiations over their trade relationship has been gradual. Trump did not specify how China supposedly breached the agreement or threaten to reintroduce punitive tariffs.
U.S. Trade Representative Jameson Greer later revealed that China had been slow in removing non-tariff trade barriers put in place in response to Trump's tariffs. These measures consisted of penalties such as blacklisting U.S. companies and limiting exports of rare earth magnets vital for products ranging from electric vehicles to wind turbines.
Greer informed CNBC that while China eliminated import tariffs as agreed, it had slowed the removal of these countermeasures. "We haven't observed the flow of some of those essential minerals as they should have been," he noted.
Confirming the escalating tensions, Trump stated in the Oval Office on Friday that China had "violated a significant portion" of the agreement reached with the U.S. But he also added that he anticipated speaking with China's Xi Jinping to work through the issue.
The legitimacy of the tariffs Trump imposed in late April came under scrutiny this week when a U.S. court ruled that the president lacks the legal authority to impose these levies. A higher court has temporarily halted the ruling while the White House pursues an appeal, adding to the uncertainty surrounding U.S. negotiations with China and other significant trade partners.
U.S. Treasury secretary Janet Yellen remarked that trade talks with China were "slightly stalled" and may need revitalization with a call between Trump and Xi. The trade struggle continues to be a contentious issue, with Huo Jianguo, a vice-chair of the China Society for World Trade Organization Studies, noting, "We should be fully prepared for negotiations and ready for a prolonged confrontation."
- The escalating trade war between the United States and China, following Trump's assertion of China's breach of the tariff truce, could potentially impact various sectors of business, including technology and general news.
- The ongoing trade disputes and the breach of agreed policies and legislation, such as the removal of non-tariff trade barriers, could stir up tensions and prolong the conflict, especially in the realm of politics and policy-and-legislation.
- The latest development in the trade dispute between the US and China could pose a challenge to long-term business dealings and overall economic growth, potentially escalating and intertwining with international war-and-conflicts scenarios.
