- Trump accused China of violating their trade truce, reigniting tensions and spooking markets.
- U.S. officials pointed to China restricting critical mineral exports as a likely trigger.
- The Dow, S&P 500, and NASDAQ all dipped following Trump’s post and stalled trade talks.
President Donald Trump fired off another explosive Truth Social post on Friday, accusing China of “totally violating” a trade agreement with the U.S.—and markets didn’t take it well. Stock futures dipped shortly after the post, as investors braced for what could be the next chapter in an already unpredictable tariff war.
In the post, Trump claimed he had “saved” China by cutting a quick deal to avoid economic collapse on their side after slapping 145% tariffs on Chinese goods back in April. China responded with its own steep 125% tariffs on U.S. imports. Then earlier this month, both countries agreed to a 90-day tariff truce, dialing things down to 30% and 10%, respectively. That brief moment of calm? Yeah, it’s over.
“So Much for Being Mr. NICE GUY!”
Trump’s frustration boiled over: “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” he wrote. He didn’t clarify exactly what part of the deal China allegedly broke, but officials hinted at one possible trigger—rare earth minerals.
On CNBC Friday morning, U.S. Trade Rep Jamieson Greer claimed China is “choking off” critical exports that the U.S. relies on. Treasury Secretary Scott Bessent also admitted negotiations are, well, stalled. Meanwhile, analysts say China’s restrictions on key materials like rare earth elements could be part of the dispute.
Tariff Drama, Markets React—and a Little Extra Spice
The fallout wasn’t catastrophic, but it was noticeable. The Dow dropped 0.12%, while the S&P 500 and NASDAQ slipped 0.46% and 0.81%, respectively. “Not massive, but a real directional shift,” said CNN’s Matt Egan.
It also didn’t help that Trump had already been in the spotlight this week for clashing with a reporter over the now-viral nickname “TACO”—short for “Trump Always Chickens Out.” The term, cooked up by a Financial Times columnist and picked up by Wall Street traders, jabs at Trump’s tendency to threaten tariffs… then backpedal when markets start shaking.
But this time, Trump seems more fired up than usual. With talks frozen and new measures potentially on the table—including more tariffs and even visa restrictions—the U.S.-China trade saga looks like it’s heating up again. Whether this is a real pivot or just another bluff? Markets will be watching closely.
