U.S. and China Near Trade Deal as Deadline Looms, Says Trump Treasury Secretar
Treasury Secretary Scott Bessent revealed Thursday that the U.S. and China have reached a preliminary trade agreement, though President Trump has yet to approve the terms. Speaking on CNBC, Bessent described negotiations as "tough" but expressed confidence in finalizing the deal before the August 12 deadline, when current reduced tariffs could snap back to previous highs.
Key Deal Terms Under Discussion
Tariff Reductions:
U.S. duties on Chinese imports lowered from 145% to 30% (temporarily)
China's retaliatory tariffs cut from 125% to 10%
Outstanding Issues:
Technical trade barriers and enforcement mechanisms
China's oil purchases from Iran and tech transfers to Russia (non-trade sticking points)
Political and Legal Hurdles
Trump's Final Approval:
The president insists on personally signing off, telling Truth Social: "If our Country was not able to protect itself by using TARIFFS... WE WOULD BE ‘DEAD’"
Court Challenge:
Federal appeals court is reviewing whether Trump overstepped by using emergency powers to impose tariffs
Legal precedent could redefine presidential trade authority
Market Implications
Positive Signs: Bessent's optimism sparked rallies in S&P 500 futures (+0.8%) and yuan (0.5% gain)
Risks: Failure to finalize by August 12 could reinstate:
145% U.S. tariffs on $370B of Chinese goods
125% Chinese tariffs on American agricultural exports
"This isn’t just about tariffs—it’s a test of whether the two largest economies can coexist competitively without economic warfare."
— Trade analyst quoted by CNBC
Next Steps:
Trump administration aims to conclude talks by August 9
Legal ruling on tariff authority expected within 30 days
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