China responded to President Trump on Monday , accusing the US of violating their trade agreement and vowing to protect its interests.
“If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,” the Chinese Ministry of Commerce said.
Beijing accused the US of introducing discriminatory restrictions, which include new guidelines on AI chip export controls and the withdrawal of Chinese student visas.
China's salvo came days after Trump lashed out at China on Truth Social , saying China had "violated" its trade deal with the US.
"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!" Trump wrote. Later in the Oval Office, he hinted he planned to speak with Chinese leader Xi Jinping.
The escalation comes as the US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — looks more fragile amid both trade-related and other tensions.
Meanwhile, US trade talks with the EU have come back into focus as an early-July deadline looms for Trump's 50% tariffs on imports from the bloc. The EU on Monday said it "strongly" regrets Trump's hike on steel and aluminum imports to 50%, a move he announced Friday, saying it undermines planned trade talks.
Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation , deeming the method used to enact them "unlawful."
That means Trump's tariff agenda remains intact, if in flux, in the latest twist in the unfolding legal saga that Trump said Friday he was confident he would "win."
The White House has vowed to take its appeal to the Supreme Court if necessary.
Administration officials also hinted that court rulings would not be the final say. Yahoo Finance's Ben Werschkul has an overview of the other maneuvers Trump could pursue.
Here are the latest updates as the policy reverberates around the world.
LIVE 1045 updates