WASHINGTON, D.C. (Erie News Now) — Just weeks after the United States and China agreed to ease tariffs on each other’s goods, the two nations are trading accusations of violating that temporary deal. 

On Monday, China accused the U.S. of undermining the May 12 agreement, which had significantly reduced tariffs imposed on each other. At the center of the renewed tension are rare earth minerals—critical for everything from iPhones and electric vehicles to missile systems and fighter jets. 

On Friday, President Donald Trump claimed that Beijing had breached parts of the fragile trade agreement, reigniting a heated standoff between the world’s two largest economies. China’s Ministry of Commerce responded, accusing the administration of “provoking new economic and trade frictions.” 

Beijing pointed to recent moves by the Trump administration- including new export control guidelines on artificial intelligence chips, halting sales of certain chip design software to China, and reports of plans to revoke Chinese student visas- as proof the U.S. is not holding up its end of the bargain. However, China has yet to ease export restrictions on rare earth minerals, despite expectations set by the temporary agreement. 

White House Press Secretary Karoline Leavitt said Monday that talks between the two leaders are expected to occur very soon. 

“The two leaders will likely talk this week,” said Leavitt. 

David Argyle, CEO of REalloys Inc., said the administration’s approach is bold but necessary. 

"The President is tackling China head-on,” said Argyle. “All tariff wars come to an end. But right now, we’re in a dispute phase.” 

Argyle, whose company works within the rare earth minerals supply chain, said China has dominated the market for decades, particularly in semiconductors and electronics. But Trump’s tariff strategy aims to change that. 

“The U.S. needs to rapidly expand it’s supply chain, independent completely of China, which also includes Chinese equipment, Chinese IP and Chinese consumables, which are used in the processing of rare earths to magnets,” said Argyle. 

He added that although the tariffs may create short-term economic strain, they are vital to reigniting domestic manufacturing. 

“As he does that, and tariffs give that bridge to do that, then you'll see I think a lot of economic growth in these industrial heartlands... I believe that a trade deal that meets the U.S. strategic goals will be an outcome,” said Argyle. “In the meantime, for consumer products, there will be some pain, but that pain is necessary because you must bring the jobs back.” 

The White House has framed the ongoing dispute as a national security issue as much as an economic one. But with both sides digging in, the risk of further escalation is real as global markets watch closely. 

On Friday in Pittsburgh, during a rally with U.S. Steelworkers, President Trump announced that he will raise tariffs on steel and aluminum from 25% to 50%. That increase is scheduled to take effect Wednesday.