Trump claims China has "totally violated" tariff pause deal

President Trump on Friday blasted China and accused it of violating the trade truce the two countries signed earlier this month.Why it matters: Just as courts hollow out Trump's tariff campaign, he's re-escalating on other fronts.Catch up quick: On May 12 the U.S. and China, following talks in Switzerland, announced a 90-day deal to lower tariffs on each other while they negotiated on trade.The pact lowered U.S. tariffs on Chinese goods from 145% to 30% — essentially moving from a full trade embargo to a painful levy.Driving the news: In recent days there have been reports the detente was not going well, with Treasury Secretary Scott Bessent describing talks as "a bit stalled" Thursday night.Trump blew it all up Friday morning.What they're saying: "Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!!" Trump wrote on Truth Social. "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!"By the numbers: The stock market immediately dropped on Trump's post.S&P 500 futures, which had been roughly flat, dropped about 0.5%.The index is up almost 5% since the China deal was struck, continuing a rally that started after Trump paused most other tariffs in April. What to watch: It's not clear what action Trump could take against China next.The tariff reduction is supposed to last until August 12.In the meantime, a federal court ruled the tariffs Trump imposed on China were illegal anyway, a ruling that's been stayed for now.The Chinese embassy in Washington did not immediately respond to an email for comment on Trump's post.Dave Lawler contributed.Editor's note: This is a developing story.

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