In late May 2025, U.S. President Donald Trump publicly accused China of "totally violating" a recent trade de-escalation agreement, signaling a rapid deterioration of a brief truce in the ongoing trade dispute between the two economic giants. The accusation, made on May 30, followed a May 12 deal where the U.S. had agreed to lower its tariffs on Chinese goods from 145% to 30% for 90 days, and China had reciprocated by reducing tariffs on U.S. goods. U.S.
Trade Representative Jamieson Greer specified that China had failed to remove non-tariff barriers and was slow-walking compliance, particularly concerning the resumption of critical mineral exports, such as rare earths, which was reportedly a key U.S. demand in the pact. This focus on critical minerals underscores their emergence as a central battleground in the broader tech and trade war, indicating a U.S. strategic push to secure supply chains for high-technology industries.
The renewed accusations, coupled with other U.S. actions like revoking visas for some Chinese students, suggest that trade issues are increasingly intertwined with national security and the race for technological supremacy. China’s Foreign Ministry responded by accusing the U.S. of politicizing trade and attempting to suppress China, vowing to defend its interests. The quick reversal from a fragile agreement to renewed hostility highlights the deep-seated nature of the disputes and the immense uncertainty such volatility creates for global markets and businesses.
Source: AP News