On May 30, 2025, President Donald Trump accused China of "totally violating" a recently established trade agreement, signaling a potential escalation in trade tensions between the two economic superpowers.

The agreement, reached on May 12, 2025, aimed to ease escalating trade tensions by implementing a 90-day mutual reduction of tariffs. Under the accord, the U.S. agreed to reduce tariffs on Chinese goods from 145% to 30%, while China committed to lowering tariffs on U.S. goods from 125% to 10%, with these changes set to take effect by May 14. President Trump's recent accusations suggest that China has not adhered to the terms of this agreement, potentially reigniting the trade dispute.

During his first term, the U.S. and China engaged in multiple rounds of escalating tariffs and non-tariff trade barriers beginning in January 2018. In January 2020, they signed a "phase one" trade deal, under which China committed to purchasing $200 billion of U.S. goods and services over the next two years. However, China failed to meet this target, ultimately importing even less than it had before the trade war.

In February 2025, President Trump declared a national emergency over Chinese drug-trafficking, which he used to justify a 10% tariff on all Chinese imports. In March, he increased the tariff to 20%. China retaliated with tariffs of 15% on coals and liquefied natural gas and 10% on oil and agricultural machines.

President Trump expressed frustration over China's alleged non-compliance, stating that the initial deal had helped stabilize China's economy, which was under severe strain due to high U.S. tariffs. He lamented his previous conciliatory approach, indicating a shift towards a more assertive stance.

U.S. Trade Representative Jamieson Greer supported Trump's accusations, citing China's slow compliance as unacceptable. He emphasized that the U.S. had fulfilled its commitments under the agreement, while China had not.

Treasury Secretary Scott Bessent acknowledged ongoing tensions and indicated that negotiations had stalled, though a new round of talks and a possible call between Trump and Chinese Party Chair Xi Jinping might occur in the coming weeks.

The news led to a dip in U.S. stock futures, reflecting market uncertainty over the trade relationship.

Renewed tariffs and trade barriers may disrupt global supply chains, increase costs for consumers and businesses, and potentially slow economic growth. The deterioration in trade relations could strain diplomatic ties between the U.S. and China, affecting cooperation on other international issues. Financial markets may experience increased volatility due to uncertainty surrounding trade policies and their potential impact on global economic stability.

President Trump's accusations against China mark a significant development in the ongoing trade tensions between the two nations. The potential escalation of this dispute could have far-reaching implications for the global economy, diplomatic relations, and financial markets. Observers will be closely monitoring the situation for further developments and potential resolutions.