President Donald Trump accused China of “totally violating” a hastily brokered trade agreement, claiming he stepped in just weeks ago to stabilise China’s collapsing economy, caused by his aggressive tariffs. In a fiery Truth Social post, Trump said he made a “FAST DEAL” out of concern for China’s civil unrest and factory shutdowns — only to be “betrayed” by Beijing’s non-compliance.

Trump wrote: “China was in grave economic danger… many factories closed and there was civil unrest… I didn’t want to see that happen. But China has TOTALLY VIOLATED its agreement with us.”

What’s behind the accusation?

Trump claims his tariffs — some over 100% — crippled Chinese trade into the US, leading to emergency talks. He says the US helped China avoid deeper economic chaos, but now Beijing has failed to hold up its side of the deal.

US Trade Representative Jamieson Greer echoed Trump’s concerns, saying:

“China has been slow to remove countermeasures and we haven’t seen the expected flow of critical minerals. If the court ruling goes against our tariffs, we have other tools.”

What’s next?

Greer warned that the US may expand Section 301 tariffs if necessary. He also pointed fingers at the EU, calling them a close second after China when it comes to trade imbalances.

The administration insists it’s ready with “other tools” if courts limit Trump’s current tariff powers.

Market & Global Impact

The so-called “TACO trade” (Trump Always Chickens Out), a mocking term for Trump’s past trade flip-flops, now appears dead, signalling a potentially harsher US stance moving forward. Markets are watching closely, as a return to high-stakes tariff battles could disrupt global supply chains, particularly in critical minerals and tech.

This escalation could reignite a US-China trade war, rattle markets, and complicate supply chains just as global inflation shows signs of cooling. Investors should brace for renewed volatility.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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