Tensions Flare as U.S. Accuses China of Trade Deal Breach

Rare-earth minerals fight reignites tariff threats as markets fall and Trump and Xi plan talks.

Photo by Freeman Zhou on Unsplash

President Trump recently accused China of violating a trade deal brokered last month in Geneva, claiming Beijing is “slow-rolling” its obligations under a fragile trade truce.

“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump posted on Truth Social, referencing stalled approvals for rare-earth mineral exports essential to U.S. manufacturing. (WSJ)

The deal, struck by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, drastically reduced tariffs for 90 days in exchange for renewed Chinese export approvals.

But Beijing responded Monday by blaming the U.S. for undermining the agreement with a new wave of “discriminatory and restrictive measures against China” - including AI chip export bans and visa revocations for Chinese students. (NBC)

“Instead of reflecting on its own actions, [Washington] has falsely accused China… China firmly rejects these groundless accusations,” said China’s Commerce Ministry, warning of “strong and resolute” retaliation. (NBC)

Bessent countered that Beijing’s actions are hurting U.S. businesses. “That is not what a reliable partner does,” he said on Face the Nation.

Rare earths minerals are crucial for cars, energy tech, and defense, and China controls the bulk of global supply.

---

Beijing is digging in, Washington’s getting louder, and both sides are playing hardball with global consequences.

🧠 With minerals, tech, and security all in play, the U.S.-China standoff is shaping up to be more than just a trade dispute.

👉 Become a Pro Subscriber now to unlock today’s exclusive Pro Brief and dive deeper on the future of U.S.-China trade, rising Indo-Pacific tensions, and what it all means for the markets.