The trade tariff clash between China and the U.S. worsened a decades-long trade war between the two countries. Trouble and division are reappearing in the relationship between the world’s two biggest economies. China states that the United States is breaking the agreement they recently reached, and this signals new challenges in a trade war that has already affected many parts of the world.

The United States has seriously disrupted the agreements established in Geneva.

Geneva trade talks have made the surprising announcement that both the U.S. and China must ensure a tariff truce. China and the U.S. reached a deal to reduce their tariffs on goods exchanged between the two countries. U.S. tariffs decreased from an extreme 145% to a modest 30%, and China lowered its tariffs from 125% to 10%. This trade agreement was taken as a one-time attempt at an accord after many years of heated economic fights.

Therefore, China’s Commerce Ministry declared that the United States has “seriously disrupted” the agreements established in Geneva and discussed during a phone call between the leaders of both countries this year. Beijing thinks specific recent steps by the U.S. breach the basic diplomatic arrangements.

Among the complaints from China, they state that U.S. sales of advanced software for making computer chips have been halted for Chinese organizations. The government has issued warnings against using Huawei chips, and Chinese students studying in the U.S. are facing increased visa cancellations.

Additionally, the Chinese government states that the U.S. actions are outside the usual scope of trade and harm our ability to develop new technology. “Tensions are being added when the world should rather be trying to build trust among nations.”

“China has broken its deal with us,” claimed President Trump.

On the contrary, the United States claims China is the one responsible for violating the agreement first. President Trump said, “China has broken its deal with us,” though he did not give any specific examples. Later, the U.S. Trade Representative explained that promised actions to eliminate non-tariff barriers in China had not been taken.

Claims by U.S. officials suggest that these non-tariff barriers, which include strict rules and licenses, continue to give Chinese companies a competitive edge. American businesses claim that they still face difficulties gaining access to the Chinese market despite reports of more lenient regulations.

Despite the heated discussion, both sides still seem theoretically open to re-negotiating their differences. Over the weekend, senior U.S. officials said that there is a strong possibility that President Trump and President Xi will soon have direct conversations.

According to Bessent on CBS News, more details on the trade deal would be discussed in a future conversation between the two leaders. Hassett from the National Economic Council spoke to ABC News and said, “Talks are possible,” and the leaders could confirm this by the end of the week.

Still, the way that nations negotiate with one another is not simple. Unlike the Trump administration, Chinese officials typically ask their junior diplomats to work out the details before consulting President Xi.

President Trump last week declared that the United States would double its tariffs on steel and aluminum imports, making them 50%. As Donald Trump said in Pittsburgh, the goal of this move is to boost American steel and depend less on Chinese metal.

“Talks are possible,” said Hassett, hinting at potential leader-level negotiations.

Beijing views the new tariff as a departure from the spirit of the agreement reached in Geneva, which could harm China despite not being the only country involved.

Chinese trade expert analyzes that this is not only about steel. These types of agreements set the guidelines and expectations for future deals. If the U.S. chooses to change the rules at any moment, how could anyone trust an agreement? It is not only affecting China, but it also destroys the overall trade rules.

The Geneva truce, initially seen as a significant achievement for peace, now appears to be losing its strength. Analysts are saying that as long as both countries do not stick to the previous commitments and negotiate in good faith, the trade war might break out once more.

Australian and Chinese markets, firms, and employees are intently monitoring developments. If trade disputes grow worse again, millions of tech firms, farmers, students, and manufacturers risk losing a lot.

If the U.S. changes the rules anytime, how could anyone trust future agreements?

The hope provided by the recent Geneva agreement was short-lived, as new accusations and solo measures have increased the risk to the U.S.–China trade relationship. It’s not yet clear if Trump and Xi can meet to fix the truce, and the fact is that trust is scarce, and time is not on their side.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.