WASHINGTON, USA — Tensions between the United States and China flared anew on Friday, May 30, 2025, after President Donald Trump accused Beijing of violating a recently brokered trade truce, raising fears of a renewed escalation between the world’s two largest economies.
The U.S. and China had agreed to reduce tariffs earlier this month during high-level talks in Geneva.
The deal saw the U.S. lower tariffs on Chinese imports from 145% to 30%, while China reduced its retaliatory tariffs from 125% to 10%.
The agreement was meant to provide a 90-day window to ease frictions and resume negotiations.
However, in a post on his Truth Social platform, Trump alleged that China had “totally violated its agreement with us,” without offering specific details.
He further claimed his administration had made a “FAST DEAL” to prevent what he described as a worsening economic scenario for China, but was now disappointed by Beijing’s conduct.
“Everybody was happy! That is the good news!!! 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!” Trump wrote.
Providing further clarification, U.S. Trade Representative Jamieson Greer told CNBC that although China had removed certain tariffs as agreed, it had yet to lift non-tariff barriers, including blacklists of U.S. companies and export restrictions on rare earth materials—components critical to sectors like aviation, semiconductors, and electric vehicles.
“They removed the tariff like we did but some of the countermeasures they’ve slowed on,” Greer said.
“The United States did exactly what it was supposed to do and the Chinese are slow-rolling their compliance, which is completely unacceptable and has to be addressed.”
Greer also said Washington remained “very concerned” about China’s lack of full compliance and was monitoring the situation closely.
In response, China’s embassy in Washington urged the U.S. to “immediately correct its erroneous actions” and halt what it called “discriminatory restrictions” on Chinese companies.
It did not directly address the accusation of violating the trade agreement but noted that communication between both sides had continued since the Geneva talks on Sunday, May 11, 2025.
Spokesperson Pengyu Liu accused the U.S. of “abusing export control measures,” particularly in the semiconductor industry, where Washington recently paused additional sales of critical technologies to China.
U.S. Treasury Secretary Scott Bessent added to the uncertainty, telling Fox News on Thursday, May 29, 2025, that talks with China had become “a bit stalled” and might require direct intervention from both presidents.
“I think that given the magnitude of the talks, given the complexity, this is going to require [President Trump and President Xi] to weigh in with each other,” Bessent said, adding that a direct call between the two leaders could be expected in the coming weeks.
Meanwhile, Trump’s broader tariff regime is facing legal scrutiny.
On Wednesday, May 28, 2025, the U.S. Court of International Trade ruled that the president had exceeded his authority by imposing sweeping duties.
Although the ruling was temporarily suspended by a federal appeals court following an appeal from the White House, the case adds further uncertainty to the administration’s trade strategy.
Trump criticised the court decision as “horrific” and warned of its implications for U.S. trade leverage.
“Hopefully, the Supreme Court will reverse this horrible, Country-threatening decision, QUICKLY and DECISIVELY,” he wrote on Truth Social.
In a related development, the Trump administration announced plans to “aggressively” revoke visas for Chinese students, with approximately 280,000 currently studying in the U.S. The move is expected to further strain bilateral relations.
Despite the frictions, both sides insist communication channels remain open.
Bessent maintained that further trade talks are expected and hinted that progress on some deals with other countries, including Japan, was ongoing.
While the immediate future of U.S.-China trade relations remains uncertain, analysts warn that the breakdown of the Geneva deal could ripple through global markets and undermine confidence in the stability of bilateral economic cooperation.
“There’s clearly still a desire for negotiation,” said one Washington-based trade analyst.
“But mutual trust is quickly eroding, and without that, any truce may be short-lived.”
