Trump claims China has "totally violated" tariff pause deal
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President Trump in the Oval Office. Photo: Andrew Harnik/Getty Images
President Trump on Friday blasted China and accused it of violating the trade truce the two countries signed earlier this month.
Why it matters: Just as courts hollow out Trump's tariff campaign, he's re-escalating on other fronts.
Catch up quick: On May 12 the U.S. and China, following talks in Switzerland, announced a 90-day deal to lower tariffs on each other while they negotiated on trade.
- The pact lowered U.S. tariffs on Chinese goods from 145% to 30% — essentially moving from a full trade embargo to a painful levy.
Driving the news: In recent days there have been reports the detente was not going well, with Treasury Secretary Scott Bessent describing talks as "a bit stalled" Thursday night.
- Trump blew it all up Friday morning.
What they're saying: "Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!!" Trump wrote on Truth Social.
- "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!"
By the numbers: The stock market immediately dropped on Trump's post.
- The S&P 500, which had been flat in pre-market trade before the post, was down about 0.3% by late morning.
- The index is up almost 5% since the China deal was struck, continuing a rally that started after Trump paused most other tariffs in April.
The other side: The Chinese embassy in Washington, in response to Trump's post, said it has raised concerns of late with the U.S. government over chip sector export controls, among other issues.
- "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," embassy spokesperson Liu Pengyu said in a statement.
What to watch: It's not clear what action Trump could take against China next.
- The tariff reduction is supposed to last until August 12.
- In the meantime, a federal court ruled the tariffs Trump imposed on China were illegal anyway, a ruling that's been stayed for now.
Dave Lawler contributed.
Editor's note: This story has been updated with comments from the Chinese embassy.
