United States President Donald Trump has accused China of violating an agreement to mutually roll back tariffs and trade restrictions for critical minerals, as he suggested China was in “grave economic danger” until he agreed to cut a deal earlier this month.
Posting on his Truth Social platform on Friday evening, Trump said he made a “fast deal” with China for both countries to back away from triple-digit tariffs for 90 days to “save” Beijing from a “very bad situation”.
The US leader said his tariffs of up to 145 percent on Chinese imports had made it “virtually impossible” for China to trade with the US market, resulting in closed factories and “civil unrest” in the country.
“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” Trump added.
Trump did not specify in his post how China had violated the agreement – made following trade talks in Geneva, Switzerland, in mid-May – or what action he planned to take at their alleged failure to comply with its terms.
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Asked by reporters about the China deal later on Friday in the Oval Office, Trump said: “I’m sure that I’ll speak to [China’s] President Xi [Jinping], and hopefully we’ll work that out.”
Trump’s deputy chief of staff, Stephen Miller, told reporters that China’s failure to fulfil its obligations “opens up all manner of action for the United States to ensure future compliance”.
Miller added that Trump hoped China would open up to American business in a similar manner to the way the US has been open to Chinese business “for a very long time now”.
China’s embassy in Washington said Beijing has maintained communication with its US counterparts since the Geneva talks, but said they had concerns about recently imposed US export controls.
“China has repeatedly raised concerns with the US regarding its abuse of export control measures in the semiconductor sector and other related practices,” embassy spokesperson Liu Pengyu said in a statement.
“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,” Liu added.
Broken promises
Earlier this week, media reports suggested the Trump administration had ordered US firms offering software used to design semiconductors to stop selling their services to Chinese groups.
On Wednesday, a spokesperson for the US Department of Commerce confirmed that it was reviewing exports of strategic significance to China, and “in some cases … suspended existing export licences or imposed additional licence requirements while the review is pending”.
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On Friday, shortly after lamenting China’s lack of compliance with the Geneva agreement, President Trump also announced plans to increase tariffs on foreign imports of steel from 25 percent to 50 percent on June 4.
The agreement two weeks ago dialling back tariffs for 90 days prompted a massive rally in global stocks, as it effectively lowered the US tariff rate on Chinese goods to the mid-teens from about 25 percent in early April.
As part of the deal, China also agreed to lift trade countermeasures restricting exports of critical metals needed for production by US semiconductors, electronics and defence industries.
But Trump administration officials have publicly stated that China has been slow to adhere to their Geneva commitments and have so far failed to comply.
The Reuters news agency also reported on Friday that global auto executives are sounding the alarm on a looming shortage of rare-earth magnets from China that could force car factories to close within weeks.
“Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,” the Alliance for Automotive Innovation said in a letter to the Trump administration.