POLITICS
Trade Talks Take a Turn: U. S. and China Clash Over Broken Promises
Washington, USAMon Jun 02 2025
The U. S. and China are at odds again. President Donald Trump recently took to social media to accuse China of breaking a trade agreement. He announced that he would no longer be "Mr. NICE GUY" with China on trade. This shift in tone comes after a period of optimism, where Trump had lowered tariffs on Chinese goods to 30% for 90 days to facilitate talks. China also reduced its taxes on U. S. goods from 125% to 10% during this time.
The specifics of the agreement that Trump claims was violated remain unclear. However, the tension between the two economic giants is evident. Trump's administration has been pushing for U. S. factory jobs and increased domestic investment through tariffs. This week, they escalated the conflict by starting to revoke visas for Chinese students studying in the U. S.
Trump's approach to negotiations is often unpredictable. He swings between extreme threats and grandiose claims of progress. This rollercoaster has left financial markets uncertain, with frequent sell-offs and rallies. A recent court ruling added to this uncertainty, stating that Trump overstepped his authority with broad tariffs and import taxes.
Meanwhile, the Chinese Embassy in Washington maintains that both sides have been communicating their concerns since a meeting in Geneva nearly three weeks ago. However, they also accused the U. S. of abusing export control measures and politicizing trade issues. China is pushing back against what it sees as U. S. attempts to curb its access to advanced technologies.
The U. S. Treasury Secretary Scott Bessent acknowledged that talks have stalled. He expressed confidence that China will return to the negotiating table once Trump makes his preferences clear. U. S. Trade Representative Jamieson Greer also noted that China has not removed non-tariff barriers as agreed. China, on the other hand, has imposed export bans on critical minerals in response to Trump's tariffs.
Both countries are in a race to develop advanced technologies. This competition adds another layer of complexity to their trade negotiations. The outcome of these talks could significantly impact global trade and technology development.
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questions
If Trump stops being 'Mr. NICE GUY,' will he start being 'Mr. GRUMPY PANTS' instead?
How have the recent tariff reductions impacted the U.S. economy and businesses?
Is the U.S. deliberately provoking China to gain an advantage in the tech race?