China accuses US of undermining trade agreement amid escalating tensions

In early June 2025, tensions escalated between the United States and China, shortly after a May 12 agreement aimed at mitigating trade hostilities. The agreement established a 90-day truce that intended to reduce tariffs while both countries negotiated broader trade issues. However, this pause was disrupted by both sides accusing each other of violations. The U.S. administration, under President Donald Trump, imposed tariffs and introduced restrictions, such as revoking visas for Chinese students and implementing export controls on AI chip technology. China’s Commerce Ministry noted these actions as serious violations of the Geneva consensus, accusing the U.S. of exacerbating instability in trade relations. President Trump, in turn, claimed that China was not holding to the agreed terms, thereby intensifying the conflicts surrounding both nations’ trade practices. As tensions rose, U.S. Treasury Secretary Scott Bessent indicated that negotiations had stalled, outlining the urgency for direct conversations between Trump and Chinese leader Xi Jinping to resolve disputes. The situation has significant implications for global trade, given the interlinked economies of both nations. The U.S. and EU also expressed intentions of countering potential trade fallout, further complicating the international trading landscape.