On Friday morning, President Donald Trump sharply criticized China, accusing the country of breaking a recent trade agreement with the United States. His comments raised concerns about the future of the deal and the possibility of a renewed trade war between the world’s two biggest economies.
Trump wrote on social media, “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” However, he did not specify what part of the agreement China had violated.
U.S. Treasury Secretary Voices Doubts About Trade Talks
Trump’s remarks followed comments from U.S. Treasury Secretary Scott Bessent, who expressed doubt about progress in the U.S.-China trade talks during an interview on Fox News Thursday night.
“They are a bit stalled,” Bessent said. “I believe that we will be having more talks with them in the next few weeks, and I believe we may at some point have a call between the president and Party Chair Xi [Jinping].”
Stock Market Reacts to Trade Concerns
Following these statements, U.S. stock markets fell slightly in early trading on Friday, reflecting investor worries about the uncertainty in trade relations.
Background: The Recent Trade Agreement
Earlier this month, the U.S. and China agreed to reduce the heavy tariffs they had imposed on each other. The U.S. cut tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on American products from 125% to 10%. These lower tariffs were to last 90 days while both sides negotiated a broader trade deal.
This agreement initially boosted the stock market and eased fears of a recession.
Legal Challenges to Tariffs Complicate the Situation
However, the reduced tariffs faced a major hurdle this week when a U.S. Court of International Trade panel struck down the legal basis for the tariffs on Chinese goods and several other countries. This ruling came after a set of tariffs was introduced during a White House event called “Liberation Day.”
The next day, a federal appeals court temporarily reinstated the tariffs, creating uncertainty about their final status.
What’s Next?
With legal battles ongoing and trade talks described as stalled, the future of U.S.-China trade relations remains unclear. President Trump’s accusation may signal rising tensions, but both sides are expected to continue discussions soon, possibly including direct talks between Trump and Chinese President Xi Jinping.