China has sharply rebuked U.S. claims that it violated a recent bilateral tariff reduction agreement, warning of “strong countermeasures” if Washington continues to escalate trade tensions.
The exchange follows comments last week from U.S. Commerce Secretary Howard Lutnick, who accused Beijing of “slow-rolling” its implementation of a 90-day tariff reduction deal reached during talks in Geneva. Speaking to Fox News, Lutnick alleged that China had failed to follow through on commitments to ease restrictions on key exports, including rare earth elements vital to chip and electric vehicle production.
In a strongly worded statement issued over the weekend, China’s Ministry of Commerce denied the accusations, calling them “bogus charges” and “seriously contrary to the facts.”
“China firmly rejects these unreasonable accusations,” the ministry said, adding that it had acted in “good faith” and remained committed to implementing the Geneva consensus. It further accused Washington of undermining the spirit of the agreement by continuing to impose “discriminatory and restrictive measures” against Chinese companies and individuals.
The statement cited recent U.S. moves, including tighter export controls on artificial intelligence chips, restrictions on chip design software, and the revocation of Chinese student visas, as evidence of America’s “unilateralism.”
Tensions between the two economic giants had appeared to ease last month when the Geneva talks produced a rare moment of agreement, with both sides pledging to reduce punitive tariffs in place since the height of the trade war. The pact was hailed as a modest breakthrough following years of friction under former and current U.S. administrations.
However, those gains now appear under threat.
U.S. Treasury Secretary Scott Bessent attempted to calm the situation on Sunday, saying on CBS’s Face the Nation that he believed the dispute could be resolved in a phone call between President Donald Trump and Chinese President Xi Jinping. “I’m confident this will be ironed out,” Bessent said, adding that discussions to arrange a call were underway.
Still, he acknowledged U.S. frustrations, claiming that China was “withholding some of the products that they agreed to release,” including rare earth materials.
While the U.S. has signaled readiness for high-level talks, Beijing has not confirmed any planned conversations between the two leaders. Instead, the commerce ministry warned the U.S. against “going its own way and continuing to harm China’s interests,” and reiterated that it would “resolutely take strong measures” if necessary.
The latest flare-up underscores how fragile the current trade détente remains, with both sides wary of political fallout at home and the risk of renewed economic disruption.
