Former President Donald Trump has accused China of violating a preliminary trade agreement between the two countries, signaling potential escalation in trade tensions. Trump criticized China for reneging on a deal that temporarily paused retaliatory tariffs, describing the situation as a breach of trust.
In a social media post, Trump stated, "So much for being Mr. NICE GUY!" while emphasizing that the United States had done everything required under the agreement. He asserted that the high tariffs imposed by his administration severely restricted China’s access to the U.S. market, causing economic hardship within China, including factory closures and civil unrest.
Following Trump's statement, U.S. stock futures experienced a decline. U.S. Trade Representative Jamieson Greer expressed similar concerns in a recent interview, highlighting the slow compliance by China as "completely unacceptable and needing to be addressed." Treasury Secretary also noted that negotiations between the two countries had stalled.
The preliminary agreement, reached on May 12, had aimed to pause tariff escalation after a period of heightened tariffs from both sides. Despite initial stabilization, the U.S. now alleges that China is not honoring the terms. Efforts to obtain comments from China's embassy in Washington, D.C., have been noted.
Trump also referenced the economic hardships faced by China due to U.S. tariffs, stating that he made a swift deal to help stabilize the situation. However, he expressed disappointment that China has violated the agreement, indicating potential future actions to address the issue.
This development follows a recent public exchange where Trump responded to criticism about his tariff strategies, particularly a term suggesting he often retreats from imposing tariffs, thereby influencing market behavior.
