A little over a month after the United States and China declared a truce in their tariff war, tensions are rising again.
The Associated Press reported that Karoline Leavitt, a White House spokesperson, noted on the 2nd (local time) that "there is a high possibility that the two leaders will talk this week."
U.S. President Donald Trump and Chinese President Xi Jinping are expected to coordinate conflicts surrounding the implementation of the "tariff war truce" agreed upon last month in Geneva during this call.
The United States and China agreed to a truce that significantly reduced tariffs, which had been exceeding 100%, by 115 percentage points for 90 days last month in Geneva. The U.S. lowered its tariff from 145% to 30%, and China reduced its tariff from 125% to 10%.
However, Trump claimed on the 30th of last month that "China has completely violated the Geneva agreement." He pointed out that China has not lifted its restrictions on rare earth exports.
China, which produces 69% of the world's rare earth, is controlling the export of seven types of rare earth as retaliation against U.S. tariffs.
The U.S. also ordered a suspension of exports to China of semiconductor electronic design automation (EDA) software companies, including Cadence and Synopsys, starting from the 23rd of last month. This is a counter-strategy mobilizing American corporations that dominate 80% of the EDA market, which is essential for semiconductor design.
Treasury Secretary Basant expressed optimism, stating, "If the two countries' leaders talk, it will be resolved." However, experts warned that conflicts could deepen, noting that it took 18 months from the first negotiation to final agreement during Trump's first term.