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China claims US breached trade truce

(MENAFN) China’s Ministry of Commerce on Monday accused the United States of “seriously” breaching the recently negotiated trade truce, warning that Beijing will take firm measures to protect its interests if Washington continues to undermine the agreement.

The accusation follows the May 12 accord reached during negotiations in Geneva, where the U.S. and China agreed to suspend most tariffs imposed since early April while further talks continue. However, Beijing now claims that the White House has acted in violation of the terms agreed upon during that deal and a prior discussion between Presidents Xi Jinping and Donald Trump.

China cited several U.S. actions as violations, including restrictions on Huawei chip usage, halts on the sale of chip design software to Chinese firms, and visa cancellations for Chinese students.

Just days earlier, Trump had accused China of “totally violating” the agreement, though he offered no specific examples. He claimed that U.S. tariffs had pushed China into “grave economic danger” before the recent deal was reached.

The Geneva deal included a 90-day suspension of the 34% tariff increases announced on April 2, along with reciprocal commitments by China. Both nations agreed to reverse tariff hikes imposed after April 8 but would maintain a 10% baseline tariff on mutual imports. China also pledged to ease certain non-tariff barriers, such as export restrictions on U.S. goods.

However, U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent have argued that Beijing failed to uphold its part of the agreement, particularly by not removing specified non-tariff measures. They suggested direct intervention by Trump and Xi may be necessary to break the impasse.

Beijing countered by urging Washington to reverse its “erroneous” and discriminatory actions and to honor the consensus reached in Geneva.

The current trade tensions stem from Trump’s sweeping April 2 tariffs targeting over 90 nations, including China, over trade imbalance concerns. China responded with its own tariff increases, sparking a tit-for-tat escalation that saw tariffs rise to 145% and 125% on mutual imports.

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