China Rejects U.S. Accusation of Violating Tariff Agreement

China stated on Monday that it “firmly rejects” the United States’ accusation that it violated an agreement to reduce tariffs between the two powers. At the same time, Washington hopes a meeting between the countries’ presidents will ease trade tensions. On Friday, former President Donald Trump reignited the tariff dispute by accusing Beijing of failing to uphold the terms of the de-escalation deal negotiated on May 12 in Geneva—an accusation China strongly denied.

“Washington made false accusations and unjustly blamed China for violating the consensus, which is seriously contrary to the facts,” China’s Ministry of Commerce said in a statement. “China firmly rejects these groundless accusations,“ the statement added.

The Geneva agreement had temporarily eased trade tensions, which had previously resulted in tariffs on U.S. goods reaching up to 125% and on Chinese goods reaching 145%. After two days of negotiations, the two countries agreed to temporarily lower these rates to 30% and 10%, respectively. However, Trump later accused China of “completely violating“ the deal.

China’s Ministry of Commerce claimed Washington had since introduced “a series of discriminatory restrictive measures“ against China, including export controls on AI-related semiconductors and visa revocations for Chinese students in the U.S.

“We call on the United States to reach an understanding with China, correct its mistaken actions, and uphold the shared consensus from the Geneva trade talks,“ the ministry stated.

Trump-Xi Meeting Anticipated

“China is withholding essential products for the supply chains of India and Europe, and that is not the behavior of a reliable trading partner. I trust that when President Trump and Communist Party Chairman Xi Jinping speak, this can be resolved,“ said U.S. Treasury Secretary Scott Bessent in an interview with CBS.

According to The Wall Street Journal, the issue stems from delays in China’s issuance of new export licenses for rare earths and other components vital to semiconductor and automotive production.

“The fact that China is withholding some of the products it agreed to supply under our deal could be due to a failure in the Chinese system—or maybe it’s intentional. We’ll see what happens after the Trump-Xi meeting,“ Bessent added, referring specifically to rare earth materials.

When asked when the dialogue might take place, the U.S. Treasury Secretary responded: “I think we’ll see something very soon.”

In a separate interview on ABC’s Sunday show, White House Chief Economic Advisor Kevin Hassett suggested that direct contact between the two presidents might occur “this week.“

“I think China is simply taking time to implement the agreement… We’re taking certain steps to show them how we feel about it,“ said Commerce Secretary Howard Lutnick in another televised interview. “Our president knows what needs to be done, and he will find a solution—I’m confident of that,“ he added.

Court Blocks Trump’s Reciprocal Tariffs

On Wednesday, the U.S. Court of International Trade blocked the Trump administration’s attempt to impose “reciprocal“ tariffs of at least 10%, including those affecting Canada, Mexico, and China, under the administration’s anti-fentanyl campaign. The court ruled that only Congress has the authority to implement such measures.

In the decision obtained by AFP, the judges concluded that the president could not invoke the 1977 International Emergency Economic Powers Act (IEEPA) to decree “an unlimited surcharge on products from virtually any country.”

An appeals court, following a government challenge, temporarily suspended this ruling pending a final decision on the matter.

Source: O Globo

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