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Trump Accuses China of Breaking Trade Deal, Fires Back With Sanctions and Student Visa Bans

Published: June 3, 2025
U.S. President Donald Trump signs an executive order in the Oval Office of the White House on March 26, 2025 in Washington, DC. (Image: Win McNamee via Getty Images)

In a sharp escalation of U.S.-China tensions, U.S. President Donald Trump accused the Chinese Communist Party (CCP) of “totally violating” their trade agreement, reigniting a tariff war that many thought had begun to simmer down. The accusation came in a fiery Truth Social post on May 30, where Trump claimed he had once been “Mr. Nice Guy” to China, but that Beijing had failed to uphold its end of the bargain.

“Bad news is that China, perhaps not surprisingly to some, has totally violated its agreement with us,” Trump wrote. “So much for being Mr. Nice Guy!”

The outburst has set off a wave of actions from the Trump administration, including firings of national security officials, new restrictions on Chinese student visas, and expanded tech and arms sanctions. The moves come amid a stalled trade negotiation effort and growing distrust between the two economic powers.

RELATED: Trump Freezes Student Visa Interviews, Says Harvard Should Cap International Students at 15%

The rare earths dispute

One of the most contentious issues appears to be rare earth exports — critical minerals used in everything from electric vehicles to missile systems. According to “The Wall Street Journal,” China had promised to restore export permits for these materials during the latest round of trade talks in Switzerland. Vice Premier He Lifeng reportedly agreed to U.S. demands, prompting the Trump administration to pause new tariffs for 90 days.

But once the agreement was signed, Beijing allegedly began stalling. Rare earth permits have not been processed, leaving U.S. automakers and defense contractors scrambling. “American companies are taking the hit, especially automakers,” host Katherine Hu explained in her latest “Final War” episode. “Some are warning: if this keeps up, factories will shut down just like they did during COVID.”

Worse still, reports suggest that China has only eased rare earth exports for Europe — not the U.S. “So basically, the CCP is pulling its usual trick: on paper, it ‘relaxes,’ but in practice, it uses endless delays to keep the squeeze on,” said Hu.

Breakdown in trust

Tensions were further escalated by remarks from Treasury Secretary Scott Bessent, who appeared on Fox News and hinted that a resolution would likely require a direct call between Trump and Xi Jinping. But notably, Bessent referred to Xi as “Party Chair Xi” rather than “President,” signaling a deliberate distancing from the CCP itself.

“That’s a big deal,” Hu emphasized. “It shows that the U.S. is making a clearer distinction between the CCP and the Chinese people — the fight isn’t with China, it’s with the CCP.”

This nuance reflects growing U.S. frustration with Beijing’s tactics. “The CCP’s default playbook with the U.S. is to never keep promises and just stall,” said Hu. “They’re betting that if they stall long enough, U.S. chaos will hand them an easy win.”

Trump’s five-part strategy

Trump’s retaliation has come swiftly in five key areas:

  1. National security shake-up:

    On May 23, multiple outlets confirmed that dozens of national security officials had been fired, with 160 more placed on administrative leave due to alleged ties to China. The move appears designed to “scrub away the old guard” and ensure that only “truly loyal voices remain” during trade negotiations.

  2. Visa restrictions for Chinese students:

    On May 28, Secretary of State Marco Rubio announced that visa interviews for certain Chinese students were paused for additional security checks. “Nearly 280,000 Chinese students could be affected,” Hu said, “mainly those in sensitive fields or with ties to the CCP.”

  3. Tech blockade intensifies:

    Reuters reported that Synopsys, a major chip-design software firm, will cease all business with China. Cadence and Siemens EDA, which collectively control a majority of the global EDA software market, are following suit. “Without them,” Hu noted, “it’s like trying to build a house with no blueprint — no chip models, no mass production.”

  4. Expanded arms sales to Taiwan:

    According to Reuters, Trump is planning a major increase in arms sales to Taiwan in a potential second term — far exceeding the $18.3 billion in sales during his first term. This move sends a clear signal to Beijing to think twice before using force on the self-ruling island, experts note.

  5. Visa bans for overseas censorship:

    In a direct challenge to China’s global propaganda apparatus, the Trump administration also announced visa bans on foreign officials involved in online censorship of U.S. citizens. “The CCP’s been using online trolls to silence Chinese voices abroad,” said Hu. “Now, Trump is saying: This is America, not Beijing’s playground.”

A clash of systems

Beyond trade and tariffs, Hu suggested the conflict is about more than just economics. “If we look at this U.S.-China trade clash from a deeper perspective, we’ll see that at its core, it’s really a showdown between two totally different systems — and a clash of beliefs and values.”

She concluded that no deal alone can resolve the fundamental tension: “Any trade deal is really just a temporary band-aid, not a true fix. The real way is to push for cracks within the CCP system itself — and ultimately see it collapse altogether.”

As the global stage braces for what could be a renewed round of trade and geopolitical conflict, Trump’s latest moves make one thing clear: he’s not playing nice anymore.

To see the original video, please visit the Final War’s YouTube channel here.