China has pledged to take “strong measures” after accusing the United States of breaching a trade truce agreement that both nations had signed earlier this year.
According to China’s Ministry of Commerce, the U.S. has undermined a key deal reached in May during talks in Geneva, where both countries agreed to significantly lower tariffs on each other’s imported goods. Under the Geneva deal, the U.S. reduced its tariffs on Chinese products from 145% to 30%, while China cut its tariffs on American goods from 125% to 10%.
Beijing further claimed that Washington violated commitments made between Chinese President Xi Jinping and U.S. President Donald Trump during their bilateral meeting in January 2025.
This follows remarks by President Trump last Friday accusing China of failing to honor aspects of the agreement—though he offered few specifics. U.S. Trade Representative Hamieson Greer later clarified that China had not removed non-tariff barriers as agreed.
China’s accusations on Monday outlined several U.S. actions it considers violations of the deal, including:
Blocking sales of chip design software to Chinese companies,
Issuing warnings against the use of Huawei chips,
Cancelling student visas for Chinese nationals.
Despite the Geneva deal being hailed as a diplomatic breakthrough at the time, tensions have resurfaced, exposing vulnerabilities in the truce.
White House officials maintain that a direct conversation between President Trump and President Xi remains possible in the coming days. Treasury Secretary Melissa Bessent expressed optimism, stating that both sides could resolve the dispute if talks resume.
Meanwhile, President Trump announced last week that the U.S. will double tariffs on steel and aluminum imports from 25% to 50% starting Wednesday. He said the move is aimed at protecting the American steel industry and reducing reliance on Chinese imports.
