Renewed US-China Trade War: Trump Accuses China of Breaking Tariff Truce

Raising concerns about Renewed US-China Trade War: Trump Accuses China of Breaking Tariff Truce. The long-standing trade war between the United States and China has taken a sharp turn, as former President Donald Trump accuses China of violating the recent tariff agreement. This renewed dispute threatens to unravel the tentative truce brokered earlier this month, raising concerns about escalating trade tensions between the world’s two largest economies.

Renewed US-China Trade War: Trump Accuses China of Breaking Tariff Truce

Trump’s Accusation: China ‘Totally Violated’ Trade Agreement

President Trump took to his social media platform, Truth Social, to publicly claim that China has “totally violated” the recent trade deal reached in Geneva. The agreement, intended as a 90-day truce, was supposed to reduce tariffs and ease tensions after years of tariff battles.

Trump did not provide detailed evidence for the breach, but US Trade Representative Jamieson Greer clarified that China has failed to remove non-tariff barriers, including restrictions on exports of critical rare earth minerals and the blacklisting of American companies.

These measures, according to US officials, violate the commitments China made in the Geneva talks. Greer stated, “The United States did exactly what it was supposed to do, and China’s slow-rolling of compliance is unacceptable and must be addressed.”

China’s Rebuttal: US Export Controls are Discriminatory

China’s official response sidestepped the US accusations and instead criticized Washington for imposing discriminatory export restrictions, particularly targeting the semiconductor sector.

A spokesperson from the Chinese embassy in Washington urged the US to “immediately correct its erroneous actions” and called for joint efforts to uphold the Geneva agreement.

China views these export controls as a tactic to limit its technological growth and maintain US dominance in critical industries. The ongoing disputes over technology exports continue to fuel tensions beyond tariffs and trade.

Background: The Geneva Tariff Truce

Earlier in the month, the US and China reached a temporary deal to reduce tariffs significantly as a step toward resolving deep-rooted trade disputes.

The US agreed to cut tariffs on Chinese goods from 145% to 30%, while China reduced its tariffs on American products from 125% to 10%.

This 90-day truce was meant to open a path for further negotiations on complex issues like intellectual property rights, market access, and government subsidies.

Despite these hopes, Treasury Secretary Scott Bessent described the talks as “a bit stalled,” suggesting that a direct dialogue between President Trump and Chinese President Xi Jinping would be crucial for progress.

The Economic Stakes: Protecting American Jobs and Industry

Trump’s tariff policy focuses heavily on protecting American manufacturing jobs and reducing the trade deficit with China. The tariffs are designed to discourage imports and incentivize domestic production.

However, the partial rollback in the Geneva deal and Trump’s recent warning to take a “tougher stance” if China fails to comply underline the fragile nature of this approach.

The US administration’s recent decision to revoke visas for Chinese students in the US further signals broader geopolitical tensions beyond trade.

Doubling Steel and Aluminum Tariffs: A Bold US Move

In a dramatic escalation, Trump announced plans to double steel tariffs from 25% to 50% starting next week, with aluminum tariffs also set to rise to 50%.

These measures are aimed at protecting the US steel and aluminum industries from foreign competition, despite most Chinese steel imports already facing a 25% tariff.

This move comes amid global concerns about supply chain disruptions, as many US manufacturers depend on steady imports of steel and aluminum to maintain production.

Rare Earth Minerals: A Strategic Trade Battleground

Rare earth minerals are a critical component of advanced electronics, semiconductors, and defense equipment. The US accuses China of dragging its feet on granting export licenses for these essential minerals, undermining the Geneva truce.

Disruptions in rare earth mineral supplies could severely impact industries such as automotive manufacturing, where these materials are indispensable for components like magnets.

This issue highlights the broader strategic competition between the US and China, especially in emerging technologies like Artificial Intelligence.

Legal Challenges Surrounding US Tariffs

Trump’s tariff strategy has faced legal setbacks, including a US court ruling that he exceeded his authority under emergency powers when imposing broad tariffs.

Although a federal appeals court temporarily allowed the tariffs to remain in place, this ongoing legal battle creates uncertainty over the administration’s ability to enforce its trade policies.

With deadlines looming in June, the legal challenges add another layer of complexity to an already volatile trade dispute.

The Global Impact: Market Volatility and Supply Chain Disruptions

The renewed US-China trade tensions have caused ripples in global markets. On the day Trump made his accusations, major US stock indexes like the Dow Jones, S&P 500, and Nasdaq all registered declines, reflecting investor worries.

Industries reliant on rare earth minerals and semiconductors, including automotive and technology sectors, warn of potential shutdowns and delays if supply chains are further disrupted.

The Alliance for Automotive Innovation has specifically called attention to the risks of interrupted rare earth exports.

What Lies Ahead: Prospects for Trade Talks and Resolution

Despite escalating rhetoric, US officials remain engaged in trade discussions. Treasury Secretary Bessent expressed hope for a direct call between Trump and Xi Jinping to break the deadlock.

The Trump administration is also exploring expanded trade talks with other key partners such as Japan, India, and the European Union to diversify its economic relationships.

Whether these diplomatic efforts will lead to a lasting resolution or further trade escalations remains uncertain.

Conclusion: A Crossroads for US-China Trade Relations

The recent accusations of China violating the Geneva trade deal and Trump’s aggressive tariff increases underscore the fragile state of US-China relations. With steel and aluminum tariffs doubling and critical disputes over export controls and rare earth minerals, the trade landscape is highly volatile.

Both nations appear ready for continued negotiation, but rising tensions risk a renewed and potentially more damaging trade conflict. The global economy and supply chains hang in the balance as Washington and Beijing navigate this high-stakes economic confrontation.

Also Read: US-China Trade Deal: Tariffs Slashed by 115% in Historic 90-Day Agreement to Ease Tensions

Also Read: Trump says China ‘violated’ Geneva deal with US on tariffs, minerals