US President Donald Trump and Chinese President Xi Jinping are expected to speak this week, according to White House Press Secretary Karoline Leavitt. The call would come amid rising tensions after Trump accused Beijing of breaching last month’s tariff rollback agreement, reached in Geneva, and Beijing asserting that Washington “has made bogus charges and unreasonably accused China of violating the consensus”.
Leavitt is the third senior Trump official in recent days to suggest a phone call is imminent. The exact date and time of the conversation remain unconfirmed.
US-China temporary tariff truce sparks market rally
A temporary US-China agreement to suspend tariffs for 90 days triggered a strong relief rally in global stock markets.
Tensions rise despite Geneva truce
Earlier this month, the two sides agreed to a temporary easing of trade tensions. China cut tariffs on American goods from 125% to 10% for 90 days, while the US proposed reducing its tariffs on Chinese imports from 145% to 30%.
Despite this breakthrough, progress has since stalled amid new disputes, including US export controls on AI chips and the revocation of Chinese student visas.
China warned that if the US continues on its current path, it “will continue to resolutely take strong measures to uphold its legitimate rights and interests.”
However, the temporary ceasefire failed to address fundamental US grievances over China’s export-driven, state-led economic practices. These include issues like forced technology transfers, industrial subsidies, and limited market access for foreign firms.
While the short-term tariff freeze offers breathing room, it leaves the more complex issues to be hashed out in future negotiations.
Trump accuses China of ‘totally violating’ trade deal; Beijing rejects allegation
Trump reignited the US-China trade war on Friday with an explosive post on Truth Social, accusing Beijing of failing to honor the recent tariff rollback agreement.
“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!” Trump wrote.
Trump did not provide specific details about how China allegedly broke the deal, but claimed the violations were severe and deliberate. The comments come less than a month after both nations agreed in Geneva to reduce tit-for-tat tariffs for a 90-day cooling-off period.
Trump says tariffs crippled Chinese economy
In the same post, Trump claimed his aggressive tariffs had left China’s economy “in grave danger,” leading to factory closures and unrest.
“Two weeks ago China was in grave economic danger! The very high Tariffs I set made it virtually impossible for China to TRADE into the United States marketplace,” he said.
He further claimed that a wave of “mild civil unrest” in China prompted him to pursue a quick resolution.
“I saw what was happening and didn’t like it, for them, not for us. I made a FAST DEAL with China in order to save them… and I didn’t want to see that happen,” Trump added.
Beijing: Trump’s claims are “bogus” and “contrary to facts”
China’s Commerce Ministry responded swiftly and sharply, rejecting Trump’s accusations and reaffirming its commitment to the Geneva consensus.
“China has been firm in safeguarding its rights and interests, and sincere in implementing the consensus,” the ministry said, according to AFP.
Beijing also accused Washington of “unreasonably” blaming China while taking discriminatory actions of its own.
“Washington has made bogus charges and unreasonably accused China of violating the consensus, which is seriously contrary to the facts,” the statement said.
“We urge the U.S. to meet China halfway, immediately correct its wrongful actions, and jointly uphold the consensus from the Geneva trade talks.”
What’s next?
With President Trump and Chinese leader Xi Jinping expected to speak in the coming days, the future of the trade truce hangs in the balance. Trump’s accusations and Beijing’s stern rebuttal signal that tensions remain high despite diplomatic efforts.
Tariff legal battle
Separately, the US trade court ruled on Wednesday that President Donald Trump exceeded his legal authority by using emergency powers to impose the majority of his tariffs on Chinese and other foreign goods. The ruling cast doubt on the legality of the broader tariff regime enacted during the Trump administration.
But in a swift reversal, a federal appeals court temporarily reinstated those tariffs less than 24 hours later. The court issued a stay on the lower court’s decision while it reviews the government’s appeal. It set a fast-track schedule, ordering the plaintiffs to respond by June 5 and the Biden administration to reply by June 9.