‘Went COLD TURKEY, it was devastating for them…’: Donald Trump slams China for ‘violating’ trade agreement with US – what went wrong this time?
US President Donald Trump claims he was a ‘Nice Guy’ with China – that he helped China out of a ‘devastating’ situation when the world’s second largest economy was in ‘grave economic danger’. But, China ‘violated’ its agreement with the US, Trump has said in his latest social media post on the Truth Social. Trump’s latest salvo against China comes as no surprise for experts, who have come to accept Trump’s ‘flip-flops’ as a reality.Two weeks ago, the US and China announced reaching an agreement for a temporary 90-day reduction in their tariffs, following discussions between senior officials in Geneva. The United States decided to temporarily decrease its additional tariffs on Chinese goods from 145 percent to 30 percent. In response, Beijing implemented a corresponding reduction, bringing down its additional tariffs from 125 percent to 10 percent.US tariffs continue to be elevated, incorporating a 20 percent duty that the Trump administration recently applied to Chinese products, citing concerns about Beijing’s supposed involvement in illegal drug trafficking – an allegation that China has firmly disputed.But things seem to have gone down hill again since then. Trump’s social post reads, “Two weeks ago China was in grave economic danger! The very high Tariffs I set made it virtually impossible for China to TRADE into the United States marketplace which is, by far, number one in the World. We went, in effect, COLD TURKEY with China, and it was devastating for them. Many factories closed and there was, to put it mildly, “civil unrest.” I saw what was happening and didn’t like it, for them, not for us. I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn’t want to see that happen. Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!! 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!”Tit-for-tat tariffs: It’s been a bumpy roadTrump has always called China the ‘biggest abuser’ on tariffs. On April 2, also called the ‘Liberation Day’ by Trump, the US President announced sweeping tariffs on most major economies, with China getting hit with 34% tariffs (plus 20% existing tariff). China had retaliated strongly by raising its own tariffs and the situation had quickly escalated to a level where Trump eventually imposed 245% reciprocal tariffs on China.Also Read | Big embarrassment! Pakistan’s crypto attempt to ‘please’ Donald Trump in a soupTrump levied huge tariffs on Chinese imports, responding to Beijing’s stringent restrictions on exports of critical minerals, which are vital components in various products from smartphones and electric vehicles to aircraft engines and nuclear submarines.China controls an overwhelming 92% of the world’s rare earth processing capabilities and the United States depends on Chinese supplies for approximately 70% of its rare earth compounds and metals. In the past Trump administration officials have said that China is wielding its market supremacy as a strategic tool, necessitating immediate US action.Global markets went into a tailspin following the trade war between the US and China and the 90-day truce between the world’s two largest economies had brought a sense of relief – albeit fragile!So, what went wrong between the US & China this time?Trump’s statement lacks details regarding China’s specific violations of the Geneva, Switzerland agreement and does not outline his intended response towards Beijing.A US official informed Reuters that China appeared to be delaying the issuance of export licences for rare earth minerals.US Trade Representative Jamieson Greer told CNBC that China had not fulfilled its Geneva commitments. He said, “The Chinese are slow-rolling their compliance, which is completely unacceptable and it has to be addressed.”Greer indicated that China’s supply of critical minerals, previously stopped due to Chinese trade countermeasures, had not resumed as stipulated in the Geneva agreement.Earlier, in a Fox News interview, US Treasury Secretary Scott Bessen had t indicated that negotiations with China regarding trade matters were “a bit stalled.”Also Read | ‘Overstepped his authority…’: What are the scathing observations made by US trade court in ruling against Donald Trump’s tariffs?Bessent mentioned the possibility of direct involvement from President Trump and Chinese President Xi Jinping. He also noted that a telephone conversation between the two leaders might take place in the future.Meanwhile, legal hurdles are mounting against Trump’s proposed tariff measures. A recent US trade court verdict said that the president exceeded his authority by invoking emergency economic powers to warrant comprehensive tariffs.The court’s decision halted the most extensive duties since Trump’s return to office, though the ruling remains suspended pending an appeal process.Nevertheless, the verdict maintains the existing tariffs that the Trump administration had established on specific industry imports, including steel and automotive sectors.Also Read | ‘Even if we lose…’: Donald Trump administration readying two-part strategy to impose reciprocal tariffs, says ‘we will do it another way’
