By Taylor Tompkins

President Donald Trump holds a signed executive order after delivering remarks on reciprocal tariffs during an event in the Rose Garden on April 2. Saul Loeb / AFP / Getty Images

A temporary deal spurred optimism that the U.S. and China could reach a trade agreement before their trade war caused too much economic damage.

In recent days, that outlook didn't seem so bright.

President Donald Trump posted on the social media website Truth Social that China has "totally violated its agreement with us."

The president did not explain in his Friday morning post how China may have infringed on the pact.

Moments after Trump's post, U.S. Trade Representative Jamieson Greer told CNBC that "the Chinese are slow-rolling their compliance." He said that while China has decreased its tariff rates, it has not removed some of the countermeasures put in place during the trade war, such as putting U.S. companies on blacklists and restricting the flow of "critical minerals."

For its part, the Chinese government reportedly said that the U.S. was engaging in "erroneous actions." A spokesperson said the U.S. abuses export control measures in the semiconductor industry.

On Monday, a senior White House official told CNBC that Trump and China's President Xi Jinping are expected to talk about the trade dispute sometime this week. 

The trade deal in question was reached in early May. It reduced tariffs from both countries, which had been ratcheted up so high during a tit-for-tat that economists said it effectively banned trade between the two. The deal reduced U.S. tariffs on China to 30% and Chinese import taxes on U.S goods to 10%.

However, the deal was only a temporary truce while the countries negotiated a longer-term agreement. The pair has 90 days to do so before mutual tariffs of more than 100% are reinstated.

Those longer-term talks have "stalled," according to Treasury Secretary Scott Bessent on Thursday.

Another wrinkle to the discussions is the legal case against Trump's tariffs. On Wednesday night, a U.S. trade court ruled that the Trump administration does not have the authority to enforce tariffs related to fentanyl. Only 10% of the tariffs currently being charged on Chinese goods would be enforceable under that ruling.

However, on Thursday, an appeals court granted the Trump administration a temporary reprieve and is allowing all tariffs to be implemented while the case works its way through court.

READ: China Says US Measures 'Seriously Undermine' Trade Agreement

What the late-week tumult means for the future of Chinese tariffs is unclear. Stocks opened lower after Trump's social media post, which did not give an optimistic view of future talks.

"So much for being Mr. NICE GUY," he wrote.

Update, June 2, 2025: This article has been updated with information about the call between the two presidents.

Source: Investopedia