Trump accuses China of violating Geneva trade truce on tariffs

Canada Standard

2 days ago

WASHINGTON, D.C.: Tensions reignite in the U.S.-China trade truce after President Donald Trump accused Beijing of violating a recent deal to pause escalating tariffs and trade restrictions, particularly those involving critical minerals.
"China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump posted on Truth Social, referring to a mid-May deal struck in Geneva to roll back tariffs for 90 days.
While Trump did not provide specifics, a U.S. official told Reuters that China appears to be slow to issue export licenses for rare earth minerals, which are essential for U.S. industries like semiconductors and defense. These licenses were part of the Geneva agreement.
"The Chinese are slow-rolling their compliance, which is completely unacceptable," U.S. Trade Representative Jamieson Greer told CNBC.
China responded by highlighting concerns over U.S. export controls, particularly in the semiconductor sector. "China once again urges the US to immediately correct its erroneous actions," said Liu Pengyu, spokesperson for China's embassy in Washington.
Meanwhile, the U.S. has reportedly revoked export licenses and ordered companies to halt shipments of goods such as machine tools, semiconductor chemicals, and aviation equipment to China, according to sources.
Trade talks appear to be stalling. Treasury Secretary Scott Bessent told Fox News that negotiations are "a bit stalled" and may require direct involvement from Trump and President Xi Jinping. Still, Bessent expects further talks in the coming weeks.
Trump's frustration came days after being asked about the "TACO trade"—short for "Trump Always Chickens Out"—a term used by investors betting that Trump won't follow through on harsh tariffs.
"I chicken out? Oh, I've never heard that," Trump replied. "It's called negotiation."
The president also suffered a legal blow when the U.S. Court of International Trade ruled that some of his global tariffs exceeded his authority. That ruling is temporarily stayed pending appeal.
Despite the friction, talks with Japan continue. Japanese negotiator Ryosei Akazawa met with U.S. officials in Washington this week, and both sides reported progress ahead of next month's G7 summit in Canada.