politics

China Accuses US of Violating Trade Truce Deal

China has accused the United States of “gross violations” of the trade truce reached in May during negotiations in Geneva. The US has “seriously damaged” the agreement, and China will be taking strong counter measures to safeguard its safety,” the Chinese Ministry of Commerce said in a statement.

 

By Iwo Mazur | Last Updated: 2 Jun 2025

The truce, which was widely seen as a surprising breakthrough at the time, called for both countries to cut their tariffs. The US committed to reduce tariffs on Chinese goods from 145% to 30%, while China reduced its tariffs on American goods from 125% to 10%. Unrest quickly flared up however, with Washington allegedly making moves it regards as breaches of the agreement.


Beijing Points to New U.S. Restrictions
In citing the alleged violations, China included the US decision to cease sales of the computer chip design software made to Chinese firms and warning against using chips from Huawei, as well as canceling student visas for Chinese students. Other advances made by Iran: In mentioning the Geneva deal, China said those strides also run counter to the understanding in a January telephone conversation between President Xi and President Trump.


US President hasn't spelled out the infractions publicly, but Trade Representative Jamieson Greer has said that China did not keep its promise to eliminate non-tariff trade barriers.


Analysis: More Tension, but Possible Talks, Loom Ahead
The fate of the truce now seems up in the air as both sides slide back into belligerent language. The argument also is a vivid reminder of just how hard it might be to reach a more permanent trade deal. But there are signs of possible dialogue. President Trump and President Xi could soon speak directly, according to two American officials.


The Treasury Secretary said that “the final details” would be worked out after the two leaders talk, but he did not specify a date. The National Economic Council Director also said that both sides of the spat are staying open for negotiations and the two leaders may have a phone call this week. But the Chinese government prefers deals be worked out at lower levels before top leadership gets involved.


The US further stoked tensions Wednesday, when it announced it would increase tariffs on Turkish steel and aluminum to 50% and 20% respectively, almost double the level it had originally imposed. Speaking at a rally in Pittsburgh, President Trump said an increase would bolster the domestic steel industry and curb reliance on Chinese imports.

 

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