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Monday, Jun 02, 2025

Trump Accuses China of Violating Trade Agreement Amid Rising Tensions

Trump Accuses China of Violating Trade Agreement Amid Rising Tensions

U.S. President Donald Trump claims China has completely breached the preliminary trade agreement, escalating diplomatic and economic tensions.
On May 30, 2025, U.S. President Donald Trump publicly accused China of "totally violating" the preliminary trade agreement established between the two nations.

This statement has raised concerns regarding the future of U.S.-China relations, as Trump indicated that he might take further action in response to what he described as China's noncompliance.

In a post on social media, Trump stated, "The bad news is that China, perhaps not a surprise for some, has completely violated the agreement with the U.S."

This assertion comes amid ongoing uncertainty surrounding the legal standings of tariffs, with one court recently suspending certain tariffs deemed illegal, while another appeal has temporarily maintained them.

Trump's comments signify a potential escalation in tensions with China, which is regarded as the United States' foremost economic competitor.

The remarks followed a statement from U.S. Treasury Secretary Scott Bessent, who on the evening prior, noted during an appearance on Fox News that negotiations with Beijing were not progressing and had reached a stalemate.

In support of Trump's position, the U.S. Trade Representative, Jamieson Greer, expressed similar concerns regarding the alleged violations of the temporary trade agreement by China, labeling such actions as "completely unacceptable and requiring rectification."

On May 12, both countries had agreed to a 90-day suspension of reciprocal tariffs after negotiations held in Geneva, Switzerland.

Under this agreement, U.S. tariffs on Chinese exports were reduced from 145% to 30%, while tariffs imposed by China on U.S. goods decreased from 125% to 15%.

This suspension is set to expire on August 12, 2025, unless further negotiations alter the current terms.

In his recent remarks, Trump recalled the positive effects of the initial agreement, stating, "Thanks to this agreement, everything normalized quickly in China, which returned to business as usual.

Everyone was happy.

This was the good news." Meanwhile, Bessent emphasized that a direct conversation between Trump and Chinese President Xi Jinping might be necessary to alleviate the ongoing conflict.

As tensions rise, investor anxiety remains heightened regarding the situation.
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