China Accuses US of Breaking Tariff Agreement: What It Means for Trade Relations

China has accused the US of breaking their trade agreement, calling it a “serious violation.” The Ministry of Commerce claims that recent actions from Washington have undermined the consensus reached during talks in Geneva last month. This included lowering tariffs on goods traded between the two nations.

In Geneva, both countries agreed to make significant reductions: the US cut tariffs on Chinese goods from 145% to 30%, while China lowered its tariffs from 125% to 10%. However, China argues that the US has not upheld its end of the bargain, pointing to issues like restrictions on Chinese tech companies and canceled visas for Chinese students.

The agreement was unexpected for many analysts, who saw both nations as being far apart on several trade issues. Yet, these talks showed that face-to-face meetings can lead to real progress. As tensions rise again, it’s clear that keeping this fragile truce intact will be challenging.

Despite the recent strain, top officials from the White House hinted that a conversation between President Trump and Chinese leader Xi Jinping might happen soon. Treasury Secretary Bessent stated that when the two leaders discuss these issues, they expect to resolve many details.

However, the Chinese side prefers lower-level discussions before anything reaches the presidents. Tensions remain high, especially after Trump announced a doubling of tariffs on steel and aluminum, raising them from 25% to 50%. He indicated that this move aims to bolster the American steel industry and reduce dependence on China.

### Recent Context
Historically, trade relations have been rocky between the US and China. A report from the Peterson Institute for International Economics found that trade disputes have intensified over the years, with tariffs affecting businesses and consumers alike. In 2020, a survey revealed that nearly 60% of Americans believed trade with China was detrimental to the US economy.

As this ongoing trade saga unfolds, it remains to be seen how talks will progress and whether a long-term solution will emerge. Both nations will have to navigate their differences carefully to find common ground.



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