China Says US Violated Tariff Truce, Raising Trade Tensions
China Says US Violated Tariff Truce, Raising Trade Tensions

China Says US Violated Tariff Truce, Raising Trade Tensions

seniorspectrumnewspaper – China Ministry of Commerce has accused the United States of severely violating the trade truce agreed upon in Geneva last month. Beijing stated that Washington’s actions have seriously undermined the progress made during the negotiations. The Chinese government pledged to take strong measures to protect its national interests. This accusation marks a significant escalation in tensions between the two economic powers just weeks after both countries reduced tariffs on each other’s goods.

The Ministry emphasized that the US violations also break the consensus reached during a January phone call between China’s President Xi Jinping and US President Donald Trump. China views these breaches as a deliberate attempt to weaken the agreement and damage trust between the two sides. The dispute highlights the fragile nature of the recent truce and raises questions about the durability of future trade negotiations.

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Details of US Actions Cited by China as Violations of the Truce

Beijing outlined specific US actions that it considers violations of the trade agreement. These include the US government halting sales of computer chip design software to Chinese firms. Additionally, Washington has issued warnings against using chips made by Chinese technology giant Huawei. The US also reportedly canceled visas for Chinese students, further straining relations.

These moves contradict the spirit of cooperation envisioned in the Geneva deal. Where both countries agreed to lower tariffs to ease economic tensions. China argues that such unilateral measures undermine the agreement’s purpose and disrupt trade flows. The Chinese Ministry of Commerce asserts that the US has failed to uphold its commitments. Particularly concerning non-tariff barriers that Trade Representative Jamieson Greer highlighted after President Trump’s statement about China violating the agreement.

Background: Geneva Trade Truce and Tariff Reductions

The trade truce signed in Geneva marked a rare moment of progress amid prolonged tensions. Under the deal, the US reduced tariffs on Chinese imports from 145% to 30%. While China cut retaliatory tariffs on American goods from 125% to 10%. This mutual tariff rollback was intended to ease the economic conflict and open the door for further negotiations on outstanding trade issues.

Analysts viewed the Geneva agreement as surprising given the deep divisions between the two countries on multiple trade fronts. The talks demonstrated that direct dialogue between Washington and Beijing could yield compromises. Even after years of escalating tariffs and disputes. However, the recent accusations reveal how delicate the agreement remains and how easily mistrust can disrupt the fragile peace.

US and Chinese Leaders Expected to Hold Talks Amid Rising Tensions

Despite the worsening rhetoric, officials from both countries suggest that high-level talks could occur soon. Treasury Secretary Janet Yellen told CBS News that many details will be resolved once Presidents Xi Jinping and Donald Trump speak directly. Although the exact timing remains uncertain, National Economic Council Director Kevin Hassett indicated that both leaders are willing to engage in discussions this week.

However, the Chinese side prefers preliminary agreements to be finalized at lower diplomatic levels before escalating issues to the presidents. This cautious approach aims to build a more stable foundation for negotiations and prevent misunderstandings that could derail progress.

Officials on both sides also acknowledge the need to prepare for less favorable outcomes if talks fail to produce desired results, signaling ongoing volatility in trade relations.

Trump Increases Tariffs on Steel and Aluminium Amid Trade Dispute

In a recent move that further complicates the trade landscape, President Trump announced an increase in tariffs on steel and aluminium imports. Starting Wednesday, the tariffs will rise from 25% to 50%. At a rally in Pittsburgh, Pennsylvania, Trump justified this decision by emphasizing its benefits for the domestic steel industry and national supply chain security.

The tariff hike is seen as part of Trump’s broader strategy to reduce reliance on China and strengthen American manufacturing. However, it risks aggravating tensions and provoking retaliatory actions from Beijing. The new tariffs come at a critical time when both nations are attempting to maintain dialogue but remain deeply divided on trade practices and economic policies.

This development underscores the complexity of resolving US-China trade issues and the ongoing challenges in achieving a lasting agreement.