Catenaa, Friday, May 30, 2025- US President Donald Trump accused China on Friday, saying that China had “violated” its trade deal with the US, which pushed stocks down amid fears of re-escalating trade tensions.
“China was in big trouble two weeks ago” due to the high tariffs set by the US, Trump said in Truth Social.
“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 said.
US Treasury Secretary Scott Bessent told Fox News on Thursday that trade talks between the US and China are “a bit stalled,” saying a call between President Trump and China’s Xi Jinping may be needed.
The escalation comes as the US-China detente, reached earlier this month, when each country eased sky-high tariffs on the other, looks more fragile amid both trade-related and other tensions.
US stocks fell at the open on Friday, following comments from Trump, as investors feared a re-escalation of trade tensions with China.
The S&P 500 was down by 0.4%., Dow Jones by 0.15% and tech-heavy Nasdaq was down by 0.6%.
Meanwhile, Trump’s most sweeping tariffs have entered a period of legal uncertainty. A federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”
The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay.
This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps.
