China has accused the United States of “severely violating” its trade truce, indicating that it will implement strong measures to protect its interests.
China’s Ministry of Commerce has accused Washington of “seriously undermining” the agreement reached during last month’s discussions in Geneva. Both nations had agreed to reduce tariffs on goods imported from one another.
The spokesperson stated that the US actions have significantly breached the agreement established during a January phone call between China’s leader, Xi Jinping, and President Donald Trump.
These remarks follow Trump’s statement on Friday, in which he accused China of having “totally violated its agreement with us.”
The US President refrained from providing specifics; however, Trade Representative Jamieson Greer subsequently stated that China had failed to eliminate non-tariff barriers as stipulated in the agreement.
In a significant development following the trade truce established in May during discussions in Geneva, the United States has reduced tariffs on Chinese goods from 145% to 30%. China has significantly reduced its retaliatory tariffs on US goods, decreasing them from 125% to 10%.
On Monday, Beijing highlighted what it described as US violations of the agreement, which included halting sales of computer chip design software to Chinese firms, cautioning against the use of chips produced by the Chinese tech giant Huawei, and revoking visas for Chinese students.
The agreement finalized in Geneva caught many analysts off guard, given the significant distance that appeared to exist between the two parties on various trade matters.
This indicates that direct discussions between Washington and Beijing can lead to successful agreements.
As the rhetoric intensifies, the vulnerability of the existing truce has come to the forefront, underscoring the significant challenges that lie ahead in securing a long-term trade agreement.
Despite the recent allegations indicating potential setbacks in the discussions between Washington and Beijing, two senior officials from the White House revealed on Sunday that a meeting between Trump and Xi could be on the horizon.
Treasury Secretary Bessent informed CBS News, the BBC’s US news partner, that specifics regarding the trade will be “ironed out” following a conversation between Xi and Trump. However, he did not specify when that discussion is anticipated to take place.
Kevin Hassett, Director of the National Economic Council, informed ABC News that discussions between the two leaders are anticipated this week, noting that “both sides have expressed a willingness to talk.”
“Hassett emphasized the importance of preparedness, stating that we must be ready for any outcomes that may not align with our expectations regarding the upcoming discussions.”
The Chinese side advocates for agreements to be finalized at a lower level before they are presented to the president.
In a significant move last week, Trump declared that the United States would increase its tariffs on steel and aluminum from 25% to 50%. This change will take effect on Wednesday.
During a rally in Pittsburgh, Pennsylvania, on Friday, Trump asserted that the initiative would enhance the local steel industry and national supply chains while diminishing dependence on China.
