Trump accuses China: ‘It has violated the tariff agreement,’ new trade war looms

Trump accuses China of violating the trade agreement reached in Geneva and relaunches the tariff war. The truce between Washington and Beijing already seems compromised

After the agreement signed in Switzerland a few weeks ago to freeze tariffs for three months, US President Donald Trump has announced a new trade escalation. First with a post on the Truth platform, then speaking to the media in the Oval Office, Trump declared that ‘China has totally violated our agreement’. A stance that reopens tensions between the two powers.

During a rally in Pittsburgh, organised to celebrate the agreement between US Steel and Japan’s Nippon, Trump confirmed the increase in steel tariffs: ‘We will raise tariffs from 25 to 50%. This will strengthen the steel industry in the US.’

In his online message, the president accused Beijing of taking advantage of the truce: ‘Two weeks ago, China was in serious economic danger. The tariffs I had imposed made it virtually impossible to trade with the US market. Factories were closing, there was unrest. I made a quick deal to avoid the worst, but now they have violated it.’

Contacts ongoing, but tension running high

During the day, Trump reiterated the accusations from the Oval Office: ‘China has violated much of the agreement,’ while leaving a diplomatic window open: ‘I have a very good relationship with President Xi. We will talk and I hope we will resolve this.’

According to confidential sources at CNN, the US administration is already in contact with Beijing. A direct conversation between Trump and Xi Jinping is considered a crucial step in attempting to restart negotiations. Meanwhile, White House economic advisers are considering further measures, including controls on Chinese exports, managed by the Department of Commerce.

There is a real risk that the trade war between the world’s two largest economies will restart with new tensions, undoing the progress made at the last summit in Geneva.

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