 "China has accused the US of breaching its art of the two nations' agreement on trade. Representational Image")
China on Monday (June 2) accused the United States of “severely violating” a recent trade truce and pledged to take strong measures to defend its interests.
The Ministry of Commerce said Washington had “seriously undermined” the agreement reached in May during talks in Geneva, where both countries agreed to lower tariffs on each other’s goods. The ministry also cited a breach of consensus from a January phone call between President Xi Jinping and US President Donald Trump.
Tariff troubles remain
The US had reduced tariffs on Chinese imports from 145 per cent to 30 per cent, while China lowered its tariffs on American goods from 125 per cent to 10 per cent.
However, Beijing claims recent US actions, including halting sales of chip design software to Chinese firms, advising against using Huawei-made chips, and cancelling visas for Chinese students, violate the terms of the deal.
President Trump said Friday (May 30) that China had “totally violated its agreement with us,” without providing specifics. US Trade Representative Jamieson Greer later stated that China had failed to remove non-tariff barriers as agreed, BBC reported.
Xi, Trump expected to hold talks soon
Despite escalating tensions, Treasury Secretary Bessent and National Economic Council Director Kevin Hassett indicated that Xi and Trump could hold talks this week. Both officials said the leaders are willing to engage, though no date has been confirmed.
The Trump administration had shifted focus toward negotiating tariffs with other major trading partners including India, Japan, and the European Union, after trade talks with China stalled .
Last week, Trump announced plans to double tariffs on steel and aluminum imports to 50 per cent, citing the need to bolster domestic industry and reduce reliance on China.
Impact Shorts
View AllThe fragile nature of the current truce shows the challenges in achieving a long-term trade agreement between the world’s two largest economies.
With inputs from agencies