This morning, President Trump said that China “TOTALLY VIOLATED ITS AGREEMENT WITH US,” in a reference to the preliminary trade deal signed by the two nations in Geneva earlier this month. While the President didn’t specify the exact violations, U.S. Trade Representative Jamieson Greer said that China was acting too slow in removing tariff countermeasures and issuing export licenses for critical rare earth minerals.
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Now, China has provided a response in another sign of escalating trade tensions.
Trade Tensions Mount, But U.S.-China Dialogue Continues
China’s U.S. Embassy spokesperson didn’t directly respond to Trump or Greer’s allegations but instead urged the U.S. to stop its “discriminatory restrictions” on trade. He added that the U.S. has engaged in unfair export control practices within the semiconductor industry and other sectors. On Wednesday, the Financial Times reported that Trump had ordered a halt on U.S. semiconductor design software to China.
Headwinds will remain for the stock market as the U.S. and China work to negotiate a deal. Large corporations from both countries rely on each other for business and technology, with high tariffs posing a major issue for profitability and growth.
It isn’t all negative, however, as the spokesperson said that the two sides have maintained direct communication and are working to address concerns from both sides.
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