U.S. President Donald Trump has accused China of violating a trade agreement aimed at reducing tariffs and easing restrictions on critical minerals. This accusation has intensified tensions between the two nations and raised concerns about the stability of global markets.
In a statement, President Trump claimed that China had “totally violated” the Geneva agreement, which was designed to mutually roll back tariffs and trade restrictions, particularly concerning rare-earth minerals essential for various technologies. He expressed frustration over China’s actions, suggesting a shift towards a more confrontational approach in future dealings.
The alleged violation centers on China’s slow issuance of export licenses for rare-earth minerals, which are crucial for manufacturing semiconductors, electronics, and defense equipment. A U.S. official noted that China’s delay in lifting trade countermeasures has hindered the flow of these critical materials, undermining the spirit of the agreement.
The renewed trade tensions have had immediate effects on financial markets. Major stock indices, including the Dow Jones, S&P 500, and Nasdaq futures, experienced declines following the announcement. Investors are now closely monitoring the situation, anticipating potential retaliatory measures and their implications for global trade dynamics.
