Uproar Over US-China Trade Agreement Violation

Former U.S. President Donald Trump accused China of breaching a mutual agreement to reduce tariffs on critical minerals, issuing a veiled threat for tougher measures. The slow progress on China's export licenses for rare earths has raised concerns amidst stalled U.S.-China trade talks, affecting industries reliant on these materials.


Devdiscourse News Desk | Updated: 31-05-2025 02:42 IST | Created: 31-05-2025 02:42 IST
Uproar Over US-China Trade Agreement Violation
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In a dramatic twist on Friday, former U.S. President Donald Trump publicly accused China of violating an agreement with the U.S. to roll back tariffs on critical minerals, suggesting stronger measures might be in order. "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US," Trump stated emphatically on his Truth Social platform. He highlighted a deal previously struck in May intended to alleviate impending economic turmoil in China caused by his initial tariffs.

Details of the violation remain unspecified, but Trump indicated intentions to speak with Chinese President Xi Jinping to resolve the impasse. In the meantime, discussions are said to be stalled, with U.S. officials expressing frustration over China's slow implementation of promises, particularly regarding the issuance of export licenses for rare earth minerals crucial for U.S. industries.

As trade tensions escalate, global industries like automotive are expressing alarm over the potential shortage of rare-earth magnets essential for manufacturing. Meanwhile, U.S. officials have noted that other areas, such as U.S. export controls and critical semiconductor technologies, were not part of the trade agreement, thereby complicating negotiations further and prompting discussions ahead of high-level international meetings.

(With inputs from agencies.)

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