China Accuses US of Breaking Trade Agreement, Warns of Strong Response

Tensions are rising again between the US and China over trade. On Monday, China’s Ministry of Commerce said the United States has "seriously violated" the recent trade agreement made in Geneva. The deal, made in May, saw both countries agree to lower tariffs on each other's goods.

Under the deal, the US dropped tariffs on Chinese products from 145% to 30%, while China lowered its tariffs on US goods from 125% to 10%. However, China now claims the US is not following through.

Chinese officials say the US has taken actions that go against the agreement. These include placing restrictions on exports of artificial intelligence (AI) chips, stopping sales of chip design software, and cancelling visas for Chinese students.

China also says the US is not honouring the promises made during a phone call in January between Chinese President Xi Jinping and US President Donald Trump.

President Trump recently accused China of "totally violating its agreement with us," but did not explain further. Later, US Trade Representative Jamieson Greer said China had failed to remove non-tariff barriers as agreed.

Despite the renewed tension, US officials say there is still a chance for direct talks. Treasury Secretary Bessent and National Economic Council Director Kevin Hassett both said a call between Trump and Xi could happen soon. Hassett added that while both countries are open to talks, the US must be prepared if things don’t go as planned.