Trump Claims China Violated Trade Truce, S&P 500 Opens 0.4% Lower

Key Moments:

Trump Accuses China of Trade Deal Breach

President Donald Trump reignited tensions with China on Friday, arguing Beijing had violated the conditions of its trade deal with the United States. In a post published on Truth Social, Trump asserted that China had been struggling amid increased US tariffs and failed to uphold its end of a deal. “So much for being Mr. NICE GUY!” read Trump’s post on the platform.

In light of the US-China trade tensions spiraling anew, US equity markets suffered declines as Friday’s trading session commenced. The S&P 500 dropped 0.4%, with its valuation reaching 5,889.09. The Dow, meanwhile, fell by 0.27%, marking a loss of around 114 basis points that saw the index slip to 42,101.46. Tech stocks ticked lower as well, as the Nasdaq Composite dipped 0.66% to 19,049.16.

Trump’s accusations follow earlier commentary by Treasury Secretary Scott Bessent regarding the discussions with the United State’s second-largest trade partner. During a Thursday appearance on Fox News, Bessent claimed that trade talks with China were stalled. According to Bessent, a direct call between President Trump and Chinese President Xi Jinping might be necessary to break the impasse.

Tariff Policy in Legal Limbo

President Trump’s sweeping tariff regime has recently come under legal scrutiny. On Wednesday, the US Court of International Trade moved to strike down key portions of the levies. However, the very next day, the US Court of Appeals for the Federal Circuit issued a temporary administrative stay, allowing the tariffs to remain in effect while the case was being examined. The court granted the Trump administration time to file its briefings by June 9th. Thursday also saw the White House expressed that it was prepared to take the matter to the Supreme Court if needed.