Stock markets dip as Beijing blasts Trump’s ‘bogus charges’ that it’s violating the Geneva trade agreement

Chinese stocks fell on Monday after US president Donald Trump revitalized trade tensions with China, threatening an unstable truce since negotiations in Geneva last month.

The Hang Kong Index in Hong Kong, which tracks the traded companies in the Chinese city, fell 0.6 % on Monday. The markets were closed on the main mainland of China due to the Dragon Boat Festival.

On Friday, Trump argued that Beijing “completely violated” its agreement with the United States, the two sides agreed to suspend most of the definitions on each other for three months to allow continuous trade negotiations.

Beijing returned on Monday, accusing American officials of publishing “fake fees”.

“China strongly rejects these unreasonable accusations,” said the country’s Ministry of Commerce.

S&P futures decreased by 0.5 %, as of 4:30 am. Stoxx Europe 600 decreased by 0.2 %.

And retreat from the customs tariff

On Friday, Trump did not explain why he felt Beijing to the level of his promises.

However, Trump officials pointed to rare Earth exports as one consecutive point. As part of its retaliatory measures against the United States, Beijing has expanded its export controls on rare ground minerals, and is used in the main components of semiconductors, electronics and military equipment.

In a television interview on Friday, the American commercial actor, Jameson Jarir, suggested that China continues to “slow down and suffocate” these metal exports.

Beijing also accused the United States of not fulfilling its promises. After the United States suggested that the use of artificial intelligence chips in Huawei can violate the country’s export controls, and Beijing complained that the proposal undermines the “consensus” reached in Geneva.

According to what was reported, the United States has expanded the export control elements since then to include other high -tech commodities such as chips and flight equipment.

He also threatened to cancel the visas of Chinese students studying in the United States, if they had relations with the Communist Party of China or working in “critical areas”.

However, US Treasury Secretary Scott Beesen, unlike the healthiest tone for other members of the administration, kept the hope of a call between Trump and Chinese President Xi Jinping “very soon.”

“I am sure that when President Trump and party leader Shi have a call that this will be settled,” he said at CBS. Facing the nation Sunday.

Japan is also down

The Nikkei 225 index in Japan also decreased by 1.3 % after cautious comments from local officials in trade negotiations with the United States, which other governments aspire to Tokyo to find out how their commercial deals with Washington can develop.

Japanese negotiators confirmed that there will be no possible deal unless the United States made some concessions on the definitions, especially those imposed on the auto industry.

The Taiwan’s Taiex index also fell by 1.6 % on Monday, as large manufacturers such as TSMC and Foxconn fell.

The tariff hour. The stopping of 90 days depends on the mutual definitions of the president on July 9. If the Trump administration does not stop stopping, Japan will face a 24 % tariff on its exports to the United States

On Sunday, US Trade Minister Howard Lootnick suggested that he did not believe that another coming extension. (Besides, the American president may choose to ignore the stop and impose definitions anyway, because he has briefly threatened to carry out the European Union).

American courts add uncertainty. Last Wednesday, a federal court ruled that Trump exceeded his legal authority to impose a “liberation day” tariff; A day later, the Court of Appeal allowed definitions to continue at the present time with the continued legal deliberations.

And more introductory visits are coming. During the weekend, in a gathering celebrating investment in Nippon Steel in the United States, Trump pledged to raise steel tariffs to 50 %, starting from June 4.

Other Asian markets seemed to ignore the uncertainty related to the tariff. The KOSPI index in South Korea was flat, while the S&P/ASX 200 in Australia decreased by only 0.2 %. NIFTy 50 in India also decreased by only 0.2 %, as of 4:30 am.

This story was originally shown on Fortune.com

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2025-06-02 08:42:00