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Tensions between the US and China are back, with President Trump accusing China of breaching the recent Geneva trade agreement to reduce trade restrictions on both nations.
Trump also plans to double tariffs on steel and aluminum, which could lead to new escalations in the trade war. China hit back by also accusing the US of violating their recent trade deal and is committed to taking measures.
Trade Deal Fallout and New Tariffs
US President Trump announced recently that he plans to double steel and aluminum tariffs starting on June 4th. The announcement was made during a rally in Pennsylvania, which indicated plans for a merger with US Steel and Japan’s Nippon Steel for the US to protect its steel industry. ⁽¹⁾
These measures follow his claim that China violated an agreement in May to reduce tariffs and trade barriers, especially on rare earth elements for US semiconductors and defense companies. Trump went to his social media platform, Truth Social, and stated that China violated the agreement. ⁽²⁾
Trump did not specify how China violated the Geneva agreement but has expressed hope for a conversation with China’s President Xi Jinping to come to a solution.
However, China’s Ministry of Commerce denied the claims, and accused the US of bringing in new measures, such as AI chip exports and the revocation of Chinese student visas.
US Restrictions on China
Moving on from tariffs, the US has also placed new restrictions on China, including chip restrictions, bans on jet engine parts exports, and the revocation of visas for Chinese students. These actions are considered discriminatory, described by China, which could impact bilateral relations. China is committed to protecting its interests if the US continues with these policies.⁽³⁾
US decisions on these measures come following the May meeting in Geneva between US Treasury Secretary Scott Bessent and Chinese officials, which led to a 90-day suspension of most tariffs. However, the recent US actions have reignited tensions, with Beijing accusing Washington of undermining the deal.
Geopolitical Tensions and Taiwan
China has warned the United States against “playing with fire” over Taiwan in response to US Defense Secretary Pete Hegseth calling the Asian power a “threat to the region” at a high-profile summit in Singapore. Speaking at the Shangri-La Dialogue on Saturday, Hegseth said China was “credibly preparing” for military action to shift Asia’s power balance, accusing Beijing of rehearsing a potential invasion of Taiwan. ⁽⁴⁾
Beijing accused the US of instigating a “Cold War mentality” and challenging its sovereignty. The absence of China’s defense minister at the summit, a break from tradition, further highlighted the deteriorating diplomatic climate. ⁽⁵⁾
China considers Taiwan, a separately governed island, to be a part of its territory and has vowed reunification by force if necessary. Taiwan’s government rejects Beijing’s sovereignty claims, saying only the island’s people can decide their future. ⁽⁶⁾
