China has strongly refuted accusations made by U.S. President Donald Trump that Beijing violated a consensus reached during recent trade talks in Geneva. The Chinese commerce ministry labeled Trump's claims as "groundless" and stated that China would take "forceful measures" to protect its interests. This marks a renewed escalation in trade tensions between the two economic giants.

Beijing asserts that it has diligently implemented and upheld the agreement established in Geneva, which included a 90-day pause on triple-digit tariffs and China's commitment to lift countermeasures on critical metal exports essential for U.S. industries. Conversely, China's Ministry of Commerce accused the United States of undermining this consensus by introducing multiple "discriminatory restrictive" measures. These actions allegedly include issuing guidance on AI chip export controls, halting sales of chip design software to China, and revoking visas for Chinese students. The ministry stated that these U.S. actions "severely violated the consensus" and "gravely harmed China's legitimate rights and interests."

President Trump on Friday accused China of breaching a bilateral deal to roll back tariffs, and further announced a doubling of import tariffs on steel and aluminium to 50%. While China is a major steel and aluminum producer, its steel exports to the U.S. are already minimal due to previous tariffs. U.S. Commerce Secretary Howard Lutnick also accused Beijing of "slow-rolling" the agreement, and U.S. officials have expressed frustration over perceived delays in China approving export licenses for rare earths.

The Chinese commerce ministry emphasized that the U.S. government has "unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability." It urged the United States to "immediately correct its wrong practices" and work collaboratively to uphold the "hard-won" Geneva consensus. The ministry warned that if the U.S. persists in actions detrimental to China's interests, China will "resolutely take forceful measures to safeguard its legitimate rights and interests."

Despite the heightened rhetoric, U.S. Treasury Secretary Scott Bessent suggested a potential call between President Trump and Chinese President Xi Jinping to resolve the differences, expressing confidence that the issues could be "ironed out." However, China's official statements have not yet echoed this sentiment regarding a leadership call, instead focusing on its firm stance and the need for the U.S. to alter its approach. The global markets have reacted to these renewed tensions, with stock exchanges showing volatility.