• Trump accuses China of violating a recent trade agreement on tariffs.
• The deal involved a temporary rollback of tariffs to manage trade tensions.
• Concerns persist over China's compliance with export licenses for critical minerals.
• Discussions on trade between the US and China are reportedly stalled.
• Global markets react negatively to Trump's accusations and rising tensions.

President Donald Trump accused China of "totally violating" a trade agreement made earlier this month regarding tariffs, suggesting that the recent economic truce appears to be collapsing. In a post on his Truth Social platform, Trump stated that under this agreement, tariffs were to be temporarily lowered as both nations navigated their trade relationship. The US had reduced tariffs on Chinese imports from 145% to approximately 30%, while China reciprocated with a reduction from 125% to 10%. He asserted, “So much for being Mr. NICE GUY!” in reference to his previous conciliatory tone towards China, according to CBS News, Reuters, and The New York Times.

Trump's accusations surfaced two weeks after a reported breakthrough in negotiations held in Geneva, primarily aimed at alleviating the tensions that had recently strained bilateral relations. He claimed that the high tariffs previously imposed had nearly crippled Chinese industry, stating, “We went, in effect, COLD TURKEY with China, and it was devastating for them.” Following his deal, which he characterized as a "fast deal" to protect China from its dire economic circumstances, he expressed disappointment at their apparent failure to comply with the newfound agreement, according to South China Morning Post and TRT Global.

Further details on China's alleged violations were not disclosed by Trump; however, US Trade Representative Jamieson Greer noted that China had been "slow-rolling" compliance with aspects of the Geneva agreement, particularly in issuing export licenses for rare earth minerals essential to American manufacturing. This inability to adhere could jeopardize critical supply chains for industries reliant on these materials, especially electronics and defense, as reported by Channel News Asia and Al Jazeera.

In response to the rising tensions, US Treasury Secretary Scott Bessent noted that trade discussions had become "a bit stalled," indicating that the direct involvement of Trump and Chinese President Xi Jinping might be needed to navigate these complex negotiations. While officials from both sides have maintained communication since the Geneva talks, the increasing complexities regarding tariffs and trade restrictions are making resolution challenging, according to India Times and Newsweek.

The situation has prompted concerns among business leaders as the volatile nature of US-China trade relations continues to impact stock markets. Following Trump's post about China's compliance issues, major indexes experienced declines, reflecting apprehensions over the ongoing uncertainties in international trade policy and its implications for future agreements, according to CBS News and Channel News Asia.