China has accused the United States of severely violating the trade truce reached during talks in Geneva last month and warned it will take strong measures to defend its interests. The Chinese Ministry of Commerce said Washington has seriously undermined the agreement under which both countries had agreed to lower tariffs on goods imported from each other.

A spokesperson for China added that US actions have also severely violated the consensus reached during a phone call in January between Chinese leader Xi Jinping and US President Donald Trump. This accusation follows Trump’s statement on Friday that China had totally violated its agreement with the US.

Although Trump did not provide details, US Trade Representative Jamieson Greer said China had not been removing non-tariff barriers as agreed under the deal. The trade truce struck in May reduced US tariffs on Chinese goods from 145 percent to 30 percent and China’s retaliatory tariffs on US goods from 125 percent to 10 percent.

On Monday, Beijing specified the US violations included stopping sales of computer chip design software to Chinese companies, warnings against using chips made by Chinese tech giant Huawei, and cancelling visas for Chinese students.

The Geneva deal had surprised many analysts as the two countries appeared very far apart on trade issues, showing that face-to-face talks can produce agreements. However, rising rhetoric highlights the fragility of the current truce and indicates the challenges ahead in reaching a longer-term trade deal.

Despite the tensions, two senior White House officials suggested on Sunday that talks between Xi and Trump could happen soon. Treasury Secretary Bessent told CBS News that details of the trade issues would be ironed out once the leaders speak but did not give a timeline. National Economic Council Director Kevin Hassett said on ABC News that both sides expressed willingness to talk and expected discussions this week. However, China prefers that agreements be finalized at lower levels before reaching the presidents.

Last week, Trump announced the US would double tariffs on steel and aluminium from 25 percent to 50 percent starting Wednesday. Speaking at a rally in Pittsburgh, Pennsylvania, Trump said this move would boost local steel production and national supply while reducing reliance on China.

As the trade dispute continues, the outcome of upcoming talks between Washington and Beijing will be closely watched as the global economy faces uncertainty from this escalating conflict.

The Upcoming IPOs in this week and coming weeks are Ganga Bath Fittings, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are 3B Films

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.