Angry Trump accuses China of ‘violating’ deal on tariffs

So much for being Mr Nice Guy, says the US President in a social media post that caused jitters in the markets.

The US President did not specify how China had breached the agreement reached in Geneva. Picture: Chris Kleponis/Splashnews.com/The Times

American investors took fright after President Donald Trump accused China of violating a tariff agreement, escalating tensions in a trade war that has caused turbulence in equity and bond markets.

In a post on Truth Social, Trump wrote: “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”

The US President did not specify how China had violated the agreement in Geneva, where both sides agreed the US would drop levies on Chinese imports from 145 per cent to 30 per cent over a 90-day negotiation period and China would cut duties from 125 per cent to 10 per cent.

By lunchtime in New York the S&P 500 index was down 0.3 per cent at 5895.97 while the Dow Jones industrial average was 0.2 per cent lower at 42,178.61. The technology-heavy Nasdaq was down 0.7 per cent at 19,077.04.

The losses might have been steeper but for the latest data showing that US consumer price inflation held steady in April. The US Federal Reserve’s key inflation measure rose by 0.1 per cent between March and April and by 2.1 per cent over the year. Both figures were in line with forecasts and it means the annual inflation rate has dipped to its lowest level since September.

The figures indicate that the inflationary consequences of threatened tariffs did not materialise last month. The White House announced levies on April 2 and then delayed them for most countries for 90 days on April 9.

Economists expect a sharp increase in consumer prices if the US goes ahead as higher import costs are usually passed on by companies to consumers.

The Times