President Trump lashed out at China on Friday, accusing the country of breaking the trade agreement the two nations reached just weeks ago.
The deal, announced on May 12 after negotiations in Switzerland, had called for a 90-day easing of tariffs while both sides continued talks. Under the terms of the agreement, the United States reduced its tariffs on Chinese imports from 145% to 30%, moving away from what had effectively been a trade blockade.
But signs of trouble began to emerge this week. Treasury Secretary Scott Bessent said Thursday night that discussions had become “a bit stalled,” and on Friday morning, Trump publicly blasted China for violating the terms of the deal.
“Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!!” Trump posted on Truth Social. “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”
The markets responded quickly. The S&P 500, which had been flat in pre-market trading, fell about 0.3% by late morning. Despite the dip, the index is still nearly 5% higher than it was when the U.S.–China agreement was first announced, continuing an upward trend that began when Trump paused most other tariffs in April.
In response to Trump’s accusations, the Chinese embassy in Washington issued a statement defending its actions and pushing back against what it called discriminatory U.S. policies. Spokesperson Liu Pengyu said, “China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva.”
What steps Trump might take next remain unclear. The current agreement is set to remain in effect until August 12. Meanwhile, a federal court recently ruled that Trump’s earlier tariffs on China were illegal—a decision that has been temporarily stayed while legal proceedings continue.
{Matzav.com}