China rejects US accusations of violating Geneva tariff agreement

China has strongly denied allegations from the United States that it breached a recent tariff agreement, signaling renewed tension between the two economic giants.

The dispute comes after both countries agreed last month in Geneva to reduce high tariffs on each other over a 90-day period. However, US officials recently accused Beijing of not fully implementing the terms. Commerce Secretary Howard Lutnick criticized China on Fox News, saying it was deliberately delaying the agreement’s execution.

In response, China’s Ministry of Commerce issued a statement on Monday rejecting what it called "unfounded accusations," asserting that the US was misrepresenting the facts. It emphasized China’s commitment to protecting its own interests and to sincerely following through on the Geneva consensus.

The ministry also criticized the US for introducing additional restrictions since the agreement, including export controls on AI chips, limits on chip design software, and visa revocations for Chinese students.

China urged the US to "meet it halfway" and "correct its wrongful actions" in order to maintain the progress made during the Geneva negotiations. Otherwise, Beijing warned it would respond with firm measures to defend its rights.

Amid growing frustration in Washington over delays in Chinese approvals for exports like rare earth materials, Treasury Secretary Scott Bessent suggested a possible call between President Donald Trump and Chinese President Xi Jinping could help resolve the impasse.

Bessent expressed optimism on CBS’s "Face the Nation," stating he was confident the issue would be addressed soon. However, he also noted that China was still withholding some agreed-upon exports.

While Bessent hinted that a Trump-Xi conversation might happen soon, China’s Monday statement made no mention of such plans. It instead emphasized that the Geneva deal was a hard-earned agreement based on mutual respect and warned the US against further unilateral actions that could harm Chinese interests.

Following Trump's comments online, global markets reacted cautiously. Hong Kong’s stock exchange dropped nearly 2 percent after opening on Monday.