Tensions between Washington and Beijing escalated sharply Monday as China accused the United States of breaching the terms of a recent tariff truce and vowed to take "resolute and forceful measures" in retaliation. The Chinese Commerce Ministry said the U.S. had violated the May 2025 trade agreement struck in Geneva by imposing new export controls and targeting Chinese nationals, signaling a renewed rupture in relations between the world's two largest economies.
The controversy comes just weeks after President Donald Trump and Chinese President Xi Jinping agreed to slash import tariffs by a combined 115 percentage points in a bid to calm markets and lay the groundwork for longer-term negotiations. But both sides are now accusing each other of violating the agreement's spirit and substance.
"The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations," China's Commerce Ministry stated Monday, adding that Beijing had fulfilled its obligations under the pact by suspending or canceling reciprocal tariffs.
According to the ministry, the U.S. undermined the agreement by implementing export control guidelines targeting AI chips, halting sales of chip design software to Chinese firms, and announcing plans to revoke visas for Chinese students with alleged ties to the Communist Party or sensitive sectors.
"If the U.S. insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests," a ministry spokesperson said in remarks carried by state media.
President Trump, in a post on Truth Social on May 30, wrote: "We went, in effect, COLD TURKEY with China, and it was devastating for them...I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation...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 White House has not detailed which specific actions it believes violate the pact, but Treasury Secretary Scott Bessent told CBS News on Sunday that China had failed to deliver critical minerals promised under the Geneva deal. "What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe, and that is not what a reliable partner does," Bessent said.
Bessent added that he was "confident" the issues could be resolved through direct talks between Trump and Xi. "Maybe it's a glitch in the Chinese system, maybe it's intentional," he said. "We'll see after the president speaks with [Xi]."
U.S. National Economic Council Director Kevin Hassett confirmed that a phone call between Trump and Xi was expected later this week. However, Beijing offered no indication of further talks and maintained its position that Washington must reverse its recent actions.
