WORLD NEWS

U.S. President Donald Trump on Friday sharply accused China of breaching a key trade agreement, reigniting tensions between the world’s two largest economies just weeks after a temporary truce was reached.
“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” Trump posted on his Truth Social platform.
The public rebuke came as trade talks appear to have stalled, according to U.S. Treasury Secretary Scott Bessent, who told Fox News on Thursday that negotiations were moving slowly and a resolution might require direct talks between President Trump and Chinese President Xi Jinping.
🛑 Stalled Progress After Initial Truce
Just two weeks ago, both countries had agreed to a 90-day tariff truce, temporarily suspending hundreds of billions of dollars in tariffs. The breakthrough had sparked a global stock market rally, as investors welcomed the pause in hostilities.
However, Bessent admitted that the breakthrough “did nothing to address” the deeper issues that led to the tariff war in the first place. He cited U.S. concerns about China’s state-dominated economy, forced technology transfers, and unequal market access as persistent sticking points.
“Progress since then has been slow,” said Bessent. “But we expect more rounds of talks in the coming weeks.”
🇺🇸🇨🇳 Underlying Issues Remain Unresolved
The original agreement had focused on rolling back certain tariffs but left unresolved core U.S. complaints about China’s economic practices, particularly subsidies to state-owned enterprises and restrictions on foreign companies operating in China.
Analysts had warned at the time that the deal was more of a pause than a solution, and Trump’s statement on Friday appears to confirm those concerns.
📉 Market Reactions and Political Implications
Although financial markets had reacted positively to the earlier truce, Trump’s renewed criticism could now rattle investor confidence. With both economies under pressure—China from slowing exports and the U.S. from rising import costs—analysts say the stakes are high for both sides.
The timing of Trump’s remarks also suggests growing frustration within the White House over the pace and sincerity of China's follow-through on trade pledges.
A direct meeting between Trump and Xi may now be the only way to salvage the agreement and restore momentum to talks.