U.S. President Donald Trump has reignited trade tensions with China, accusing Beijing of “totally violating” a recent tariff de-escalation agreement. His comments followed U.S. Treasury Secretary Scott Bessent’s admission that trade talks are “a bit stalled.” The temporary truce, reached in Geneva to pause tit-for-tat tariffs for 90 days, now appears at risk—particularly as China delays export license approvals for rare earth elements crucial to the U.S. tech and auto industries.
U.S. Trade Representative Jamieson Greer criticized China for “slow-rolling compliance” and failing to significantly shift its trade behavior. Trump’s team hinted at further U.S. action if Beijing doesn’t meet its obligations. Despite tensions, Trump said he expects to speak with Chinese President Xi Jinping soon.
Meanwhile, the U.S. is deepening trade discussions with other partners, including Malaysia, Vietnam, and the EU, and progressing toward a deal with Japan. However, Trump’s broader tariff strategy is under legal scrutiny after a federal court ruled he overstepped his authority in imposing sweeping levies, although an appeal is underway.
U.S. markets fluctuated amid concerns that Trump’s confrontational trade posture with China could escalate again, potentially disrupting global supply chains and economic stability.
