Accusing China of violating the trade agreement reached in Geneva, Trump argued that Beijing had not fulfilled its commitments on “critical minerals”. Following the decision, China reacted harshly and the European Union began preparations for retaliation.
Beijing: “The accusations are baseless, we will defend our rights”
China's Ministry of Commerce responded to US President Trump's allegations, stating that the accusations were untrue. "The recent actions of the US have seriously damaged the trade truce reached in Geneva. In this process, China has acted in accordance with international law, but the US has taken steps that have destroyed the process."
The ministry also emphasized that the compromise reached in a phone call between Chinese President Xi Jinping and Trump in January was also violated. China will not hesitate to take all necessary strong measures to protect its legitimate rights and interests.
Is the agreement made in Geneva broken?
As it can be remembered, US and Chinese officials, who met in Geneva, Switzerland in May, agreed on a 90-day mutual reduction of high tariffs. In this context, the US reduced its 145% tax on Chinese products to 30% and China reduced its 125% tax on US products to 10%.
Trump: “China broke its promise”
The Trump administration announced on May 30th that tariffs on imported steel and aluminum products had been raised from 25% to 50%, accusing China of violating the agreement. This decision came on the heels of another announcement the same day that China had failed to fulfill its export obligations on “critical minerals”.
EU signals retaliation
On the other hand, the European Union Commission stated that they are closely following the developments and announced that they may take retaliatory measures if necessary. Commission sources argued that the steps taken by the US are contrary to the rules of the World Trade Organization and threaten the balance of trade.
The new tariff decisions could lead to new tensions in global supply chains. Experts warn that the escalating trade war between China and the US could increase uncertainties in the world economy.
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