'Grossly distorting the facts': China blasts Trump over trade deal accusations, warns of retaliation

China has strongly rejected former US President Donald Trump’s recent claims that Beijing broke a trade deal designed to ease tensions between the two nations. In a firm response, China’s Commerce Ministry called the accusations “unjustified” and said it would take “forceful measures” to defend its interests.

“The United States has unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations,” the ministry said in a statement shared through state media. “Instead of reflecting on its own actions, the United States has groundlessly accused China of violating the consensus, a claim that grossly distorts the facts,” it added.

Trump claims he saved China from collapse

Trump reignited tensions on May 30 when he took to Truth Social, accusing China of completely breaching the agreement both sides reached in Geneva earlier this year.

“China has TOTALLY VIOLATED the deal,” Trump wrote. He claimed the agreement was made after he noticed “many factories closed” and “civil unrest” in China. “I saw what was happening and didn’t like it, for them, not for us. I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation,” Trump added. “So much for being Mr. NICE GUY,” Trump added.

Tariff war flared and cooled in quick succession

The renewed war of words comes weeks after the two nations briefly stepped back from a major trade war. Trump’s “Liberation Day” tariff plan on April 2 sent markets tumbling, with his administration initially announcing duties that raised Chinese import tariffs to 145%. In response, China slapped its own 125% tax on US goods.

The conflict de-escalated after Geneva talks in May, where both sides agreed to soften their stances, Washington lowered its planned tariffs to 30%, while Beijing reduced its counter-tariffs to 10%.

Washington accuses China of supply delays

Despite the agreement, the Trump administration later alleged that China violated the terms by withholding vital supplies to the US defence, electronics, and automotive industries.

“What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe, and that is not what a reliable partner does,” said Treasury Secretary Scott Bessent in an interview with CBS’ Face the Nation.

Beijing accuses US of breaching Geneva deal

China, meanwhile, accused the US of failing to stick to the Geneva pact. The Commerce Ministry pointed to several recent moves by the US government as examples of unfair treatment. These include new restrictions on AI chip exports, a ban on selling chip design tools to Chinese firms, and cancelling student visas for Chinese nationals.

The Chinese statement framed these steps as “discriminatory” and “restrictive”, saying they go against the spirit of the trade consensus.

Leaders may talk soon

Despite rising tensions, a top US official hinted that a phone conversation between Trump and Chinese President Xi Jinping may be on the cards soon. Kevin Hassett, Director of the National Economic Council, told ABC News’ This Week that both leaders could speak in the coming days to discuss the dispute.