- Trump accused China of violating their trade agreement and hinted at possible retaliation.
- U.S. officials say China is delaying compliance, while trade talks remain stalled.
- Stock futures dipped as markets reacted to renewed tariff tensions and Trump’s fiery remarks.
President Donald Trump didn’t hold back Friday, accusing China of flat-out violating its temporary trade agreement with the U.S.—and he made it clear he’s not in the mood to let it slide. In a fiery Truth Social post, Trump claimed Beijing had backed out of the deal that had paused the back-and-forth tariff war. “So much for being Mr. NICE GUY!” he wrote, adding that action could be coming.
The markets reacted immediately. U.S. stock futures dipped Friday morning as investors digested the latest flare-up in U.S.-China tensions. It’s the latest in a series of volatility spikes tied to Trump’s trade rhetoric.
U.S. Trade Rep Jamieson Greer echoed the president’s frustration on CNBC, saying China was “slow rolling their compliance” with the agreement and that it was “completely unacceptable and has to be addressed.” Meanwhile, Treasury Secretary Scott Bessent gave his own take on Fox News a day earlier, saying negotiations with China are “a bit stalled.” That’s putting it lightly.
A Quick Deal… Then a Quick Breakdown?
The short-term agreement, made on May 12, was meant to pause most tariffs for 90 days. That came after Trump slapped steep tariffs on Chinese imports and China hit back with their own. Trump now says he offered China a fast deal to avoid an economic collapse on their side—claiming their economy was teetering, with factory shutdowns and what he described as “civil unrest.”
“We went, in effect, COLD TURKEY with China,” Trump wrote in his Friday post. “It was devastating for them.” According to him, the tariffs had effectively choked off China’s access to the U.S. market, pushing Beijing to the brink. The temporary deal, he added, stabilized things—but that didn’t last.
“China… HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump continued. “So much for being Mr. NICE GUY!”
Another Swipe at the Media
The timing of Trump’s post was interesting—coming just two days after a tense exchange at the White House with CNBC’s Megan Cassella. She had asked about “TACO trade,” a nickname coined by a Financial Times columnist that stands for “Trump Always Chickens Out.” The idea being, every time Trump hits markets with new tariffs, he backs off soon after—giving savvy investors a buying opportunity.
Trump wasn’t amused.
While China’s embassy in D.C. hasn’t responded yet, this latest escalation suggests we’re back in unpredictable territory. Markets are already on edge, and with both rhetoric and tariffs now back in the spotlight, anything could happen next.
