00:00The delicate trade truce between the United States and China is showing significant cracks,
00:06casting doubt on the prospects of a larger, more comprehensive trade deal.
00:11While a temporary agreement struck in Geneva in May saw both nations lower tariffs,
00:16the U.S. reducing duties on Chinese goods from 145% to 30%,
00:22and China lowering its retaliatory tariffs on U.S. goods from 125% to 10%.
00:30The recent rhetoric suggests a rapid deterioration of relations.
00:35Both sides have now accused each other of violating the terms of that truce.
00:41President Trump claimed China had totally violated its agreement,
00:45with Trade Representative Jameson Greer specifying China's failure to remove non-tariff barriers.
00:51Beijing, in turn, charged the U.S. with severely violating the agreement,
00:57citing actions such as blocking computer chip design software sales to Chinese companies,
01:02issuing warnings against using chips made by Huawei, and cancelling visas for Chinese students.
01:09Despite these escalating tensions, top White House officials remain optimistic about future dialogue.
01:16Treasury Secretary Scott Besant indicated that details of a trade deal
01:20would be ironed out once Chinese President Xi Jinping and Trump speak,
01:24though no exact date for this conversation has been set.
01:29Besant also accused China of holding back products that are essential for the industrial supply chains of India,
01:35of Europe, describing it as unreliable partner behavior.
01:40National Economic Council Director Kevin Hassett added that both leaders are expected to talk this week,
01:46with both sides have Ng expressed a willingness to talk.
01:50The path to a stable, long-term trade agreement remains uncertain,
01:54highlighting the extreme fragility of the current truce.
