Stock markets around the world exhibit varied movements following President Trump's allegations of China breaching the terms of the tariff agreement.
Wall Street and European markets closed on a mixed note on Friday, with global stocks primarily influenced by a resurgence of U.S.-China trade tensions.
President Donald Trump posted on social media, asserting that China had violated an agreement with Washington, potentially reigniting trade disputes between the world's two largest economies. Treasury Secretary Janet Yellen, previously known as Scott Bessent, had earlier stated that trade negotiations with China were experiencing a momentary stall regarding the abolition of high reciprocal tariffs.
The development could indicate the return of increased trade tensions. In the U.S., the Dow Jones Industrial Average ended the day with gains, while the S&P 500 index remained unchanged, and the tech-focused Nasdaq Composite dropped by 0.3%. Tom Cahill, an analyst from Ventura Wealth Management, stated, "If it weren't for the trade war, the market would be feeling pretty good." He also mentioned that inflation was moving in the right direction, citing the Federal Reserve's preferred inflation gauge, which showed a more substantial decrease than anticipated in the previous month.
In Europe, the FTSE 100 in London and Germany's DAX index finished the day in the green, whereas France's CAC 40 closed lower, mirroring earlier declines in Asian markets.
Notably, the U.S. and China reached an agreement in April to significantly reduce tariffs, which led to a decrease from previous levels with only a 10% base rate of reciprocal tariffs remaining. This agreement also included the suspension or removal of non-tariff countermeasures by China. However, the long-term stability of trade relations between the two countries remains tenuous due to deep-seated tensions and the temporary nature of some agreements.
The specifics of President Trump's recent claims regarding China violating the agreement were not immediately clear, and further details may emerge as negotiations continue. The success of these negotiations depend on ongoing diplomatic efforts and the ability of both parties to adhere to the agreed terms.
The trade dispute between the U.S. and China could impact various industries, particularly finance and business, as President Trump's accusations of China violating the agreement may reignite trade tensions. This situation may also influence politics, as ongoing negotiations will be crucial in determining the future of general-news related to global trade relations.
![Following the incident, the road was temporarily shut down. [A picture is included.]](/en/img/2025/06/02/1735482/jpeg/4-3/1200/75/image-description.webp)
