President Donald Trump has declared in an unhinged Truth Social post that China has “violated” an agreement with the United States, sending stock futures plummeting.
After his tariffs were blocked—then temporarily reinstated by the courts—Trump claimed on his social platform Friday that he had “saved” China from his tariffs.
“I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn’t want to see that happen. Because of this deal, everything quickly stabilized and China got back to business as usual,” Trump wrote.
On the other hand, Trump then claimed China isn’t playing fair.
“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” he wrote.
Trump imposed tariffs of 145 percent on China in April. In response, China imposed 125 percent tariffs on all U.S. imports. Earlier this month, Trump announced a “total reset” in United States-China trade relations following talks in Geneva, Switzerland. Both countries agreed to reduce the tariffs for 90 days, with U.S. tariffs on Chinese goods lowered to 30 percent and Chinese tariffs on U.S. goods reduced to 10 percent.
Negotiations between the United States and China have since spluttered to a halt, with Trump claiming that the Asian country hasn’t held up its part of a 90-day truce.
Trump did not specify how China “violated” the agreement, but these concerns could relate to China’s ongoing restrictions on exporting critical minerals, such as rare earth elements.
Also on Friday morning, U.S. Trade Representative Jamieson Greer told CNBC’s “Squawk Box” that the country “continues to, you know, slow down and choke off” the flow of minerals that America needs.
Even Treasury Secretary Scott Bessent admitted that talks with China have “stalled.”
The markets contracted within minutes in response to Trump’s post. The Dow Jones Industrial Average sank 0.12 percent while the S&P 500 and NASDAQ fell 0.46 percent and 0.81 percent, respectively.
CNN business correspondent Matt Egan called the market movement “not massive, but a significant shift in direction.”
The latest twist raises the potential for the trade war to escalate further, with Trump and his team considering imposing additional tariffs and restricting Chinese student visas.
Critics have accused Trump of reneging on his tariff threats. Wall Street traders even came up with a new, derisive acronym: TACO, which stands for “Trump always chickens out.”
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