Donald Trump, erstwhile president of the United States and current Republican organization candidate in the 2024 presidential election, againHe pointed sharp words to China. In a Communication on its Social Platform Truth Social, the prosecutionBeijing for a "total violation" of a previously concluded trade agreement with the US. This message falls in the context of ongoing trade tensions between the 2 world's largest economies and rising prices in US companies, specified as Walmart.
Trump: China has violated the trade agreement
Donald Trump's entry leaves no illusions – the erstwhile president of the United States clearly says:
“China, which any may not be amazed by, has TOTALILY GAVE THEIR AGREEMENT FROM THE US.”
These words mention to a trade agreement called Phase 1 signed in January 2020. The agreement was intended to reduce trade friction by abolishing part of the duties and expanding Chinese imports of agricultural and energy products from the US. However, according to Trump, the Chinese did not comply with the terms of the agreement.
Trump argues that his customs actions introduced in the alleged trade war had serious consequences for the Chinese economy:
"The duties I imposed in practice meant that China was cut off from the US market, which was devastating for them and led to social unrest."
According to the erstwhile President, the conclusion of a fast agreement in 2020 saved China from an even greater economical crisis.
Will there be a fresh target?
Although Trump accuses China of violating the agreement, he did not supply concrete information about possible repercussions or further administrative or legislative steps. Meanwhile, US Finance Minister Scott Bessent late admitted that trade talks with China are at an impasse.
According to Bessent, breaking this situation may require the direct engagement of the highest representatives of both states – the president of the United States and the Secretary-General of the KPC, Xi Jinping.
Criticism of Walmartra and Price Policy
This situation is facing rising prices in the United States. In May 2024, the American merchant giant Walmart reported a planned increase in product prices, explaining this step, among others, the protectionist actions of the Trump administration.
There was no answer. Trump stated Truth Social:
"Walmart should halt trying to blame duties as a reason for price increases throughout the chain. Walmart earned Billions of Dollars last year, much more than expected.”
The president suggested that the company should absorb its own customs costs alternatively than pass them on to consumers. He besides expressed the belief that both Walmart and China should "eat customs" and not charge customers additional costs.
Legal aspects of trade agreements – can an agreement be enforced with China?
International trade agreements specified as Phase 1 are frequently implemented on a voluntary basis without real enforcement. Although there are WTO mechanisms or bilateral arbitration procedures, the United States can trust mainly on unilateral tools – specified as restoring customs duties or economical sanctions.
In this context, it is worth mentioning the demands of any experts who request that fairer trade dispute resolution mechanisms be established on the global stage. However, so far, WTO courts have not been able to impose financial sanctions automatically, which limits their effectiveness.
Summary
Donald Trump's last message is further evidence that trade relations between the US and China stay tense. Although the 2020 agreement was intended to be the beginning of stability, today, according to Trump, it turns out to be a unilateral paper that the another organization does not fulfil.
In the context of the upcoming U.S. presidential elections and global geopolitical changes, this issue is of peculiar importance. American citizens observe how trade policy affects food prices, the availability of goods and the overall stableness of the economy.
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Trump accuses China of violating the trade agreement. full breach of contract
