U.S.-China trade relations are witnessing a renewed escalation, as the Trump administration expresses deep frustration over Beijing’s failure to honor recent commitments. This has prompted the White House to prepare punitive measures, further intensifying the economic and commercial pressure between the two powers.

U.S. Officials: Disappointment with China and Plans for Sanctions
According to CNN, citing senior American officials, Washington is considering sanctions against China over its failure to meet obligations discussed in recent trade talks. Officials voiced serious disappointment with Beijing’s inability to fulfill promises that could have de-escalated trade tensions between the two nations.

White House: Options to Hold China Accountable, Trump Still Open to Cooperation
In related remarks, the Deputy Chief of Staff at the White House stated that the administration has options to hold China accountable for violating tariff-related agreements. She emphasized that President Donald Trump hopes China will choose the path of cooperation and mutual understanding, underlining the need for Beijing to adhere to the rules-based international order.

Treasury Secretary: Talks Are Stalling, Trump-Xi Call May Be Needed
Treasury Secretary Scott Pissent described the trade negotiations with China as "slightly stalled", adding that a final deal will likely require direct involvement from Presidents Trump and Xi Jinping.

In an interview with Fox News, Pissent noted that progress has been slow since the last negotiation round in Geneva, which was followed shortly by another round in South Korea. He anticipates further discussions in the coming weeks.

“I think we may schedule a call between Trump and Xi at some point,” Pissent said, adding: “Given the scale and complexity of the talks, the two leaders will need to weigh in.”

Technology Front: U.S. Imposes New Chip Export Restrictions on China
Despite a temporary agreement that had reduced tariffs for 90 days, Washington has once again ramped up pressure by imposing new restrictions on semiconductor exports, this time targeting chip designers.

The U.S. Department of Commerce announced that using Huawei’s Ascend AI chips anywhere in the world constitutes a violation of U.S. export regulations.

China Responds: Accusations of Bullying and Legal Threats
The move drew a strong reaction from Beijing, with China’s Ministry of Commerce describing the U.S. warning as "a textbook example of unilateralism and market-disrupting bullying". The ministry threatened legal action against any entity that enforces the U.S. restrictions on Huawei chips.

China also accused the Trump administration of undermining the Geneva negotiations through unilateral escalation.

U.S. Clarifies Position Following Chinese Criticism
Following the backlash, the U.S. Department of Commerce amended its warning, clarifying that it was issuing guidance about the risks of using Chinese advanced computing integrated circuits, including Huawei’s Ascend chips, without reiterating the controversial phrase "anywhere in the world".

Washington: No Full Economic Decoupling, Only Sectoral Separation
Speaking at the Saudi-U.S. Investment Forum in Riyadh, Pissent clarified that the U.S. does not seek full economic decoupling from China, but aims to separate in strategic sectors that experienced major supply chain disruptions during the COVID-19 pandemic — notably in pharmaceuticals and semiconductors.

He emphasized that negotiations with Beijing will not restart from scratch, but will build on the trade agreement signed in January 2020 during Trump’s first term.

Unmet Commitments from the Previous Deal
Despite the signing of that agreement, China failed to meet its purchase targets for U.S. goods, largely due to the COVID-19 pandemic. This shortfall contributed to a rise in the U.S. trade deficit with China, paving the way for the current escalation in the trade conflict.