Trump accuses China of breaching Geneva agreement with the US regarding tariffs and mineral trade.
United States President Donald Trump has recently expressed concerns regarding China’s adherence to a trade agreement aimed at mutual tariff reductions for critical minerals. This comes in the wake of a deal struck earlier this month, which he characterizes as crucial for both nations, indicating that such negotiations become all the more significant amid economic challenges.
In a post on his Truth Social platform, Trump asserted that his administration facilitated a “fast deal” with China, allowing both countries to temporarily alleviate tariffs that had escalated to triple-digit percentages, in a bid to stabilize the Chinese economy. He emphasized that his tariffs, reaching as high as 145 percent on imports from China, had significantly hampered the country’s ability to engage with the U.S. market, leading to closed factories and regional disruptions.
Despite this, Trump has claimed that China has not lived up to its commitments from the agreement made during talks in Geneva, Switzerland, in mid-May. No specific details were provided regarding the nature of this alleged non-compliance, nor the potential steps the U.S. may take in response. When asked about the situation later during a press briefing, Trump mentioned the possibility of further discussions with Chinese President Xi Jinping, expressing hope for a resolution.
Trump’s deputy chief of staff, Stephen Miller, further emphasized that China’s actions could prompt a range of responses from the U.S. government, aimed at ensuring future compliance with agreed-upon terms. He reiterated Trump’s desire for China to reciprocate the openness that the U.S. has long extended toward Chinese businesses.
In response, China’s embassy in Washington asserted that dialogue remains ongoing, but expressed concern over recent U.S. export controls affecting critical sectors, including semiconductors. Embassy spokesperson Liu Pengyu highlighted the need for the U.S. to correct what China perceives as misguided policies which could undermine cooperative efforts.
Compounding the situation, reports surfaced indicating that the Trump administration has begun restricting the export of software used in semiconductor design to Chinese firms, bringing concerns over supply chain stability to the forefront. A spokesperson for the Department of Commerce confirmed an ongoing review of strategic exports to China, with potential adjustments to existing licenses.
Amidst these developments, President Trump also announced plans to increase tariffs on foreign steel imports from 25 percent to 50 percent by June 4. The initial agreement to reduce tariffs prompted a surge in global stock markets, indicating the significant market impact of such trade policies. While China has committed to lifting trade countermeasures against critical metals, reports suggest that compliance has been sluggish.
Overall, industry leaders, particularly in the automotive sector, voiced increasing alarm over a potential shortage of rare-earth magnets from China. This supply chain crisis could severely disrupt manufacturing and production across various essential automotive components, affecting everything from sensors to transmission systems.
#WorldNews #BusinessNews
