Chinese President Xi Jinping (L) and U.S. President Donald Trump (R).
Fabrice Coffrini | Getty Images
President Donald Trump on Friday said that China has “totally violated its” preliminary trade agreement with the United States, and suggested he would take action in response.
“So much for being Mr. NICE GUY!” Trump wrote in a social media post that said China had reneged on a deal that paused retaliatory tariffs between that country and the U.S.
Stock futures fell Friday morning on the heels of Trump’s statement.
U.S. Trade Representative Jamieson Greer, in a CNBC interview Friday morning, echoed Trump’s allegation, saying “we’re very concerned with” China’s purported non-compliance with the temporary trade deal.
The “United States did exactly what it was supposed to do, and the Chinese are slow rolling their compliance,” said Greer.
He called that “completely unacceptable and has to be addressed.”
Treasury Secretary Scott Bessent, in a Fox News interview on Thursday, said that trade talks with China “are a bit stalled.”
CNBC has requested comment from China’s embassy in Washington, D.C.
The U.S. and China on May 12 agreed to a 90-day suspension on most tariffs imposed on each other’s imports.
The agreement was reached after Trump slapped sky-high tariffs on imports from China into the U.S., and China retaliated in kind.
“Two weeks ago China was in grave economic danger!” Trump wrote in his post on Truth Social on Friday.
“The very high Tariffs I set made it virtually impossible for China to TRADE into the United States marketplace which is, by far, number one in the World,” Trump wrote. “We went, in effect, COLD TURKEY with China, and it was devastating for them. Many factories closed and there was, to put it mildly, “civil unrest.” I saw what was happening and didn’t like it, for them, not for us. 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. Everybody was happy! That is the good news!!!” the president wrote.
“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!”
Trump posted his screed two days after he lashed out at CNBC reporter Megan Cassella at the White House when she asked about the term “TACO trade,” which refers to the phrase “Trump Always Chickens Out.”
The term, coined by a Financial Times columnist, suggests that stock pickers can make money by buying shares after markets fall on news of new tariffs imposed by Trump, knowing that he invariably will pause or reduce the tariffs, sending markets higher.
Read the original article here