U.S. President Donald Trump on Friday accused China of breaching a newly negotiated deal to roll back trade barriers and tariffs on critical minerals — a development that now casts doubt over a fragile truce and clouds the prospects of restarting broader U.S.-China trade negotiations.
“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” Trump wrote on Truth Social, referring to a mid-May deal struck in Geneva, Switzerland, where both countries agreed to ease triple-digit tariffs for 90 days while broader negotiations continued.
Trump said the agreement, which he described as a “fast deal,” was intended to de-escalate tensions and provide relief to China’s already struggling industrial base. He claimed his earlier tariffs — which reached as high as 145% on certain Chinese imports — were pushing China toward factory shutdowns and the threat of social unrest.
But now, Trump accuses Beijing of failing to honor the agreement, claiming China has not taken the steps it promised.
Rare Earths Licenses at the Heart of Dispute
While Trump did not offer specifics on the alleged breach, a U.S. official told Reuters that China has not followed through on commitments to issue export licenses for rare earth minerals — essential elements used in everything from semiconductors and electric vehicles to aerospace and weapons systems.
Under the Geneva deal, China was expected to remove countermeasures that limited the export of these minerals to U.S. companies, many of which rely on Chinese suppliers for core industrial and defense applications. But so far, those shipments have not resumed in a meaningful way.
“The Chinese are slow-rolling their compliance, which is completely unacceptable and it has to be addressed,” said Jamieson Greer, the U.S. Trade Representative, during an interview on CNBC. Greer did not outline how the U.S. plans to respond.
The Chinese government, meanwhile, pushed back against the accusation. Liu Pengyu, spokesperson for China’s embassy in Washington, said Beijing had maintained communications with U.S. officials and instead criticized Washington’s tightening of export rules.
“Recently, China has repeatedly raised concerns with the US regarding its abuse of export control measures in the semiconductor sector and other related practices,” Liu said. “China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva.”
U.S. Tightens Its Own Controls
Behind the scenes, Washington has also taken new steps that are likely aggravating Beijing. According to sources familiar with the matter, U.S. authorities have revoked some existing export licenses and ordered companies to stop shipping a range of goods to China without special permission.
The affected products reportedly include semiconductor design software, specialty chemicals, machine tools, and even aviation-related equipment. The new restrictions suggest that while the U.S. agreed to ease tariffs temporarily, it has continued to ratchet up other barriers — particularly those aimed at limiting China’s technological advancement.
Talks ‘Stalled’ as Supreme Court Decision Looms
U.S. Treasury Secretary Scott Bessent confirmed Thursday that trade talks with Beijing have hit a wall. Speaking on Fox News, Bessent said that discussions since the Geneva truce have “stalled” and that breaking the deadlock may require direct intervention from Trump and Chinese President Xi Jinping.
More than two weeks after the agreement, neither side appears willing to make the next move. And it remains unclear what Trump’s latest accusation will mean for the negotiation — whether it signals the collapse of the truce or a negotiating tactic designed to pressure Beijing.
Analysts say Beijing may now be calculating that legal developments in Washington could weaken Trump’s hand. Earlier this week, the U.S. Court of International Trade ruled that Trump’s sweeping global tariffs, including those on China, were invalid because he had overstepped his authority under a national emergency law used to justify them.
While an appeals court has temporarily stayed that ruling, allowing the tariffs to remain in place, the case is expected to reach the U.S. Supreme Court in the coming months. If the court upholds the lower court’s decision, it could strike down many of the tariffs Trump imposed during his presidency, undermining the legal basis for future action.
That possibility could be encouraging Beijing to wait — believing that a U.S. court, rather than Trump, may soon force the rollback of some tariffs.
Stock Markets React
U.S. stock indexes dipped Friday after Trump’s comments reignited fears of another trade flare-up. Investors had briefly cheered the Geneva deal, hoping it would lead to a broader reset in U.S.-China economic ties. But the deeper tensions — over industrial policy, technology access, and geopolitical rivalry — remain unresolved.
The Geneva agreement did little to address longstanding U.S. complaints about China’s state-led, export-driven economy or its massive subsidies for strategic industries. Trump’s tariffs, initially framed as a way to address those imbalances, now face legal and political headwinds — while negotiations appear rudderless.
