US Accused of Breaking Trade Agreement by China, Promises "Forceful Measures" in Rising China US Trade Dispute

Rising Tensions Over China US Trade Dispute and Agreement Implementation

China officially accused the United States of violating a newly inked China US trade agreement, vowing that it would implement "resolute and forceful measures" accordingly. China had leveled the accusation after U.S. officials claimed that China did not respect a 90-day tariff rollback agreement signed on May 12, 2025.

America accuses China of withholding shipments of vital minerals essential to various American sectors—namely automotive, electronics, and military—hopping mad over alleged violation of the China trade agreement.

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China Denies Breach of Trade Agreement, Brushes Off U.S. Export Restrictions Accusations

China has strongly refuted the U.S. accusations of violation of China trade agreement, calling them "unjustified" and "misleading." The Chinese government asserts that it is honoring the terms of the Geneva-based agreement and suggests any slowdowns are logistical rather than intentional.

This is another attempt at politicizing trade matters," said a Chinese Ministry of Commerce spokesperson. "We hope the U.S. can refrain from taking unilateral actions that harm global supply chains."

Scheduled Call Between Xi Jinping and Donald Trump on Trade Talks

In the standoff's midst, U.S. National Economic Council director Kevin Hassett confirmed that a phone call is scheduled this week between President Donald Trump and Chinese President Xi Jinping. The aim is to settle the dispute and salvage the temporary deal made in the Switzerland summit.

The White House criticized China's dependability and vowed to reimpose high US tariffs on China unless compliance is restored at once.

U.S. Officials Condemn China's "Unreliability" in Export Restrictions

U.S. Treasury Secretary Scott Bessent, on CBS's Face the Nation, blamed China for stockpiling key industrial minerals, saying this has knock-on effects across the world's markets, mostly in India and Europe.

"China is not playing by the rules," Bessent said. "We negotiated this agreement in good faith. Their behavior is threatening global supply chain stability."
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President Donald Trump echoed the criticism on social media, accusing Beijing of "completely violating" the Geneva China US trade agreement.

Trade Deal Under Threat Once Again in Escalating China US Trade Dispute

The U.S.-Chinese trade relationship has grown increasingly fragile. Early this spring tensions overflowed into a virtual cutoff of Chinese imports to America, with tariffs spiking to 145%.

Although in May the two countries had agreed to a temporary reversal of tariffs and resumed negotiations, the recent spitting match now jeopardizes that fragile advance. The talks in Switzerland have grounded, according to reports.
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The Trump administration hopes that the scheduled Trump–Xi call will clarify whether China's collapse in delivery is the result of willful sabotage or systemic issues with its export controls.

Global Economic Implication of China US Trade Dispute on Supply Chains

The latest breakdown in trade talks has international repercussions—not only for the U.S. and China, but also for nations that depend on the global supply of Chinese raw materials. Already battered post-pandemic sectors could face another episode of volatility if this crisis is not fixed soon.

With the two largest economies in the world once more at loggerheads, financial markets are waiting with bated breath for any sign of de-escalation or escalation of this high-stakes China US trade dispute.