China accuses the United States of breaching the terms of their recent trade deal, which was established by Presidents Trump and Xi on January 17. The disagreement highlights ongoing tensions between the two nations regarding trade policies and compliance with the established agreement.
On June 2, 2025, China’s Ministry of Commerce accused the United States of breaching a 90-day trade truce agreed upon in Geneva on May 12, 2025, which aimed to de-escalate trade tensions by reducing tariffs and easing trade barriers. The accusations followed U.S. claims, led by President Donald Trump on May 30, 2025, that China had “totally violated” the agreement, particularly citing delays in issuing export licenses for rare earth minerals critical for U.S. industries like technology and defense. China countered that the U.S. undermined the deal by imposing discriminatory measures, including export controls on AI chips, halting sales of chip design software, and announcing plans to revoke visas for Chinese students.
China’s Commerce Ministry called these U.S. actions a “serious distortion of facts” and vowed to take “resolute and forceful measures” to safeguard its interests, though specifics were not provided. The U.S. has expressed concerns over China’s slow compliance with easing rare earth export restrictions, with Treasury Secretary Scott Bessent noting stalled talks and suggesting a Trump-Xi call to resolve issues. Both sides have accused each other of violating the Geneva consensus, raising fears of renewed trade war escalation, with global markets reacting cautiously as stock indexes dipped slightly.
The allegations highlight broader concerns about fairness and compliance in international trade practices. China asserts that the U.S. has enforced tariffs that contravene the agreement, which was intended to establish a more equitable trading environment. This development raises questions about the sustainability of the deal and its potential impact on global markets.
In response, the U.S. maintains that it has adhered to the agreement while advocating for measures that protect American interests. As both nations navigate their economic relationship, the risk of escalation remains, potentially complicating future negotiations. The situation underscores the need for ongoing dialogue to resolve disputes and foster a more stable trade framework.
