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By Shane Croucher
Senior Editor
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China has accused the U.S. of violating an agreement made at their tariff-cutting discussions in Switzerland in May, and said it will take further "forceful" action as the trade dispute between the world's two largest economies blows open again.
Trump had earlier accused the Chinese side of having "TOTALLY VIOLATED" the Geneva agreement that had resulted in the U.S. and China both reducing their import tariffs by 115 percentage points, soothing global markets.
Why It Matters
This renewed clash between the economic giants threatens to again destabilize global markets, disrupt established supply chains, and impact American businesses and consumers who rely on international trade.
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The tit-for-tat accusations have highlighted persistent mistrust and the difficulty in enforcing trade agreements, even after high-level talks aimed at reducing tariffs and calming markets. There is the risk of fresh escalation, with the reimposition of tariffs and other measures.
What To Know
In May 2025, the U.S. and China agreed in Geneva to reduce import tariffs by a combined 115 percentage points, an arrangement intended to cool tensions after years of tariffs and trade conflict that came to a head in April.
Both sides indicated the agreement was a framework toward a larger, more durable understanding—and perhaps even a deal further down the line.
President Donald Trump's administration has in recent days issued AI chip export control guidelines, stopped the sale of chip design software to China, and is planning to revoke a significant number of Chinese student visas—targeting those with ties to the ruling Chinese Communist Party or who are studying in sensitive areas.
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"These practices seriously violate the consensus" reached in Geneva, the Chinese Commerce Ministry said in a statement on Monday.
The ministry said China held up its end of the deal, canceling or suspending duties and non-tariff measures taken against the U.S. "reciprocal tariffs" following the agreement.
"The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations," while China has stood by its commitments, the statement said.
It also threatened unspecified retaliation, saying China will "continue to take resolute and forceful measures to safeguard its legitimate rights and interests."
In response to recent comments by Trump, it said of the U.S.: "Instead of reflecting on itself, it has turned the tables and unreasonably accused China of violating the consensus, which is seriously contrary to the facts."
What People Are Saying
President Donald Trump posted to Truth Social on May 30: "We went, in effect, COLD TURKEY with China, and it was devastating for them…I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn't want to see that happen…The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!"
What Happens Next
Both sides signaled a willingness to defend their positions, but had not scheduled further trade talks. However, Trump said he intends to speak by phone with Chinese President Xi Jinping soon.
China's Commerce Ministry said it would "continue to take resolute and forceful measures" if Washington does not reverse course, while U.S. officials said all options remain under review.
This article includes reporting by The Associated Press.
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