US President Donald Trump has indicated escalating trade tensions with China, claiming that China has “violated” an agreement intended to mitigate tariffs, amidst a backdrop of stalled negotiations between the two nations.
Mr. Trump’s statement on his Truth Social platform followed comments from US Treasury Secretary Scott Bessent, who remarked that trade talks with China were “a bit stalled,” during an interview on Fox News.
This month, the world’s two largest economies had reached an agreement to temporarily reduce the exceptionally high tariffs imposed on one another for a duration of 90 days, following discussions between high-level officials in Geneva.
Nonetheless, Mr. Trump asserted that, “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” although he did not elaborate on this claim.
He pointed out that the trade deficit between the United States and China “continues to be enormous,” and expressed concerns about the lack of significant changes in China’s conduct.
“The Chinese are slow-rolling their compliance, which is completely unacceptable,” remarked Mr. Greer.
Yesterday, Mr. Bessent hinted that both Mr. Trump and Chinese leader Xi Jinping might become involved in the ongoing situation.
The US agreed to lower tariffs on Chinese imports from 145% to 30%
Mr. Bessent mentioned that a call between the two leaders could happen eventually, a viewpoint echoed by Mr. Greer.
US stock markets dipped in early trading due to anxieties surrounding the trade situation with China.
Additionally, the US is engaged in “intensive talks” with other major trading partners, Mr. Greer informed CNBC, mentioning meetings next week with representatives from Malaysia, Vietnam, and the European Union.
These discussions coincide with his participation in Organisation for Economic Cooperation and Development talks in Europe.
“The negotiations are progressing well, and we anticipate reaching some agreements in the coming weeks,” Mr. Greer stated.
However, Mr. Trump’s tariff strategy is currently facing legal obstacles.
A trade court ruled this week that the president overstepped his authority in utilizing emergency economic powers to impose wide-ranging tariffs.
This ruling halted the most extensive tariffs enacted since Mr. Trump assumed office, although it has been temporarily stayed pending an appeals process.
Read more: China exempts some goods from US tariffs
Nonetheless, tariffs imposed by Mr. Trump on specific sectors, such as steel and automobiles, remain in place.
Mr. Greer emphasized the importance of navigating through the legal challenges to provide trading partners with a “better understanding of the landing zone.”
Since returning to the presidency in January, Mr. Trump has implemented extensive tariffs on the majority of US trading partners, with particularly elevated rates on Chinese imports.
New reciprocal tariffs from both sides escalated into three digits before the recent de-escalation, during which the US consented to temporarily decrease its additional tariffs on Chinese imports from 145% to 30%.
Meanwhile, China reduced its additional duties from 125% to 10%.
The higher US tariff rate also includes a 20% levy imposed by the Trump administration on Chinese goods due to the country’s alleged involvement in the illicit drug trade—an issue China has contested.
The elevated tariffs between the US and China had a significant impact, causing trade between the two nations to stagnate as businesses held off on shipments, awaiting an agreement to lower the tariffs.
