Former US President Donald Trump reignited tensions in US-China trade relations by accusing China of breaching a temporary trade agreement with the United States. Speaking on his Truth Social platform, Trump stated that his tariff policies initially placed China in economic jeopardy, leading to significant unrest within the country.
According to Trump's post, the high tariffs imposed made it nearly impossible for China to trade freely in the US market, which negatively impacted Chinese factories and triggered civil unrest. He claimed to have brokered a swift deal to stabilize China's economy and avert further turmoil. However, Trump asserted that China has since completely violated the terms of this agreement. He remarked, "Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! The bad news is that China... HAS TOTALLY VIOLATED ITS AGREEMENT WITH US." Trump also emphasized that he would no longer act as "Mr. Nice Guy" in dealings with Beijing.
This statement coincided with US officials expressing concern over stalled trade negotiations. US Treasury Secretary Scott Bessent noted delays in talks with China, and the US Trade Representative echoed these concerns, highlighting China's slow compliance with the temporary deal and deeming it unacceptable.
The trade tensions originate from tariff policies during Trump's administration, where tariffs on Chinese imports reached up to 145%. These measures led to a downturn in China's manufacturing sector, with indicators like the Purchasing Managers’ Index dropping to a 16-month low and substantial declines in cargo shipments.
Earlier in May, a significant trade agreement was reached wherein both countries agreed to substantially reduce tariffs, maintain a 10% tariff, and for China to remove retaliatory tariffs and countermeasures. The Trump administration hailed this as a pivotal step to correct trade imbalances.
