Trump accuses China of breaking Geneva deal with US over tariffs and minerals

India Today

2 days ago

U.S. President Donald Trump said on Friday that China had violated an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals and issued a new veiled threat to get tougher with Beijing."China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!," Trump said in a post on his Truth Social platform.advertisementTrump said that he made a "fast deal" in mid-May with Chinese officials for both countries to back away from triple-digit tariffs for 90 days. He said he did this to save China from a "devastating" situation, factory closings and civil unrest caused by his tariffs of up to 145% on Chinese imports.
Trump did not specify how China had violated the agreement made in Geneva, Switzerland, or what action he would take against Beijing.Asked later on Friday in the Oval Office about the China deal, Trump said: "I'm sure that I'll speak to President Xi, and hopefully we'll work that out."RARE EARTHS LICENSESBut a U.S. official told Reuters that it appears China was moving slowly on promises to issue export licenses for rare earths minerals. The deal called for China to lift trade countermeasures that restrict its exports of the critical metals needed for U.S. semiconductor, electronics and defense production.advertisement"The Chinese are slow-rolling their compliance, which is completely unacceptable and it has to be addressed," U.S. Trade Representative Jamieson Greer told CNBC, without specifying how that would happen.Indeed, Reuters reported on Friday that global auto executives are sounding the alarm on an impending shortage of rare-earths magnets from China – used in everything from windshield-wiper motors to anti-lock braking sensors – that could force the closure of car factories within weeks.Liu Pengyu, a spokesperson for China's embassy in Washington, said China has maintained communications on trade matters with U.S. counterparts since the Geneva talks, but raised concerns about U.S. export controls."Recently, China has repeatedly raised concerns with the US regarding its abuse of export control measures in the semiconductor sector and other related practices," Liu said in a statement. "China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva."Reuters reported earlier this week that the U.S. has ordered a broad swath of companies to stop shipping goods to China without a license and revoked some existing export licenses, according to three people familiar with the matter.Products affected include design software and chemicals for semiconductors, butane and ethane, machine tools, and aviation equipment, these sources said.advertisementA U.S. official with knowledge of the talks told Reuters that only tariffs and Chinese nontariff countermeasures were covered in Geneva, and that U.S. export controls were not part of the deal.Spokespersons for the White House, the U.S. Treasury and the U.S. Trade Representative's Office did not respond to requests for comment.CHINA TALKS 'STALLED'On Thursday, Treasury Secretary Scott Bessent told Fox News Channel that U.S. trade talks with China were "a bit stalled" and that getting a deal over the finish line will likely need the direct involvement of Trump and Chinese President Xi Jinping.The U.S.-China agreement two weeks ago to dial back triple-digit tariffs for 90 days prompted a massive relief rally in global stocks, and along with other pauses on Trump's import taxes has lowered the effective U.S. tariff rate to the mid-teens from around 25% in early April. It was less than 3% when Trump took office in January.The temporary truce between Washington and Beijing, however, had done nothing to address the underlying reasons for Trump's tariffs on Chinese goods, mainly longstanding U.S. complaints about China's state-dominated, export-driven economic model, leaving those issues for future talks.advertisementNO CHICKENMajor U.S. stock indexes ended little changed on Friday after Trump's complaint about China's compliance. Trump's social media post comes two days after a reporter infuriated him by asking for his reaction to Wall Street's new term for bets that he will back off from extreme tariff actions - the "TACO" trade, an acronym coined by a Financial Times columnist for "Trump Always Chickens Out."Trump responded by saying it was "the nastiest question.""I chicken out? Oh, I've never heard that. You mean because I reduced China from 145% that I set, down to 100 and then to another number?" Trump said, later adding: "It's called negotiation."Trump's tariff strategy also suffered a major setback on Wednesday when the U.S. Court of International Trade ruled that his broad global tariffs, including those on China, were invalid because he exceeded his authority under an emergency powers law used to back them. An appeals court has issued a temporary stay for the decision, allowing them to remain in place for now.JAPAN TALKSJapan's top trade negotiator, Ryosei Akazawa, met with Bessent and Commerce Secretary Howard Lutnick in Washington for 130 minutes on Friday, the Japanese government said in a statement. It added that the two sides would continue to talk ahead of the G7 leaders' summit in Canada next month where Trump and Japanese Prime Minister Shigeru Ishiba are set to meet in person.advertisementIn a later briefing to reporters, Akazawa said that while progress had been made in talks with the U.S., it was Japan's unchanged position that any deal will require the U.S. to drop all the tariffs, including those applied to automobiles, auto parts, aluminum and steel."If our requests to do that are met, we may be able to come to an agreement," Akazawa told Japanese media gathered at the Japanese embassy in Washington. "But if that is not possible, then it will be difficult for us to agree to a deal."Trending Reel