TradeWars

A U.S. appeals court has sided with the Trump administration, allowing controversial tariffs on goods from China, Canada, and Mexico to remain in place—for now. The court also called for a fast-tracked review of the ongoing legal challenge.
The U.S. Court of Appeals in Washington, D.C. extended the suspension of a lower court’s decision that invalidated Trump-era tariffs, originally imposed on Liberation Day. The ruling emphasized that a fresh review is necessary to determine whether Trump exceeded his legal powers. Until this review concludes, the reciprocal tariffs aimed at key U.S. trade partners remain in force.

Small Businesses and States Challenge Trump's Tariffs
Earlier this year, a coalition of small businesses and a dozen states filed a lawsuit in the U.S. Court of International Trade, arguing that Trump’s tariffs exceeded presidential authority under the International Emergency Economic Powers Act (IEEPA). In May, the trade court sided with the plaintiffs and ruled the White House must end the tariffs—separately applied to China, Canada, and Mexico.
The Trump administration swiftly appealed, and the next day a district court issued a stay on the ruling. Now, the appeals court has confirmed that the tariffs can stay in effect while the appeal is under review and ordered an expedited summer timeline, calling the matter “of exceptional importance.”

Reactions: Legal Disappointment vs. Political Support
Ilja Somin, law professor at George Mason University and legal counsel for the plaintiffs, called the ruling disappointing but acknowledged that the court has agreed to fast-track the case. Jeffrey Schwab, lead attorney at Liberty Justice Center, echoed this sentiment but expressed confidence that the tariffs will ultimately be overturned.
The White House, on the other hand, hailed the decision as a “welcome development,” stating that Trump’s actions were within the legal authority granted by the Constitution and Congress to address persistent trade deficits and drug-related concerns.

Trump Is the First to Use IEEPA for Tariffs
Traditionally, IEEPA has been used by presidents to sanction enemy states or freeze foreign assets. Donald Trump is the first to use it as a basis for imposing import tariffs—including February’s duties on China, Mexico, and Canada, which he claimed were necessary to combat fentanyl trafficking. April’s additional measures addressed broader trade imbalance concerns.
Critics argue that the national trade deficit does not constitute an emergency under IEEPA, and therefore the use of the law is not legally justified. Small business owners in particular claim the move was excessive and harmful.
The administration shows no signs of backing down and may pursue the case all the way to the Supreme Court.

Steel and Auto Tariffs Remain Unaffected
The current appeals court ruling does not impact broader industry-specific tariffs, such as those on steel, aluminum, automobiles, and auto parts. These were enacted under Section 232 of the Trade Expansion Act, which allows the president to impose tariffs if national security is at stake. This legal pathway remains available to the administration regardless of the IEEPA case’s outcome.

What Happens If Tariffs Are Removed?
JPMorgan estimates that if no new tariffs are imposed and the IEEPA-based ones are repealed, the U.S.’s effective tariff rate could drop to around 5%. Even then, it would still be double the level seen in 2024—highlighting the significant impact of Trump’s trade policies on the nation’s global economic strategy.

#TRUMP , #Tariffs , #TradeWars , #USPolitics , #TradingCommunity

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The United States and China will meet in London on June 9 to revive high-level trade discussions aimed at easing tensions over rare earth exports, advanced technologies, and mounting tariffs. The meeting follows a recent phone call between President Donald Trump and Chinese President Xi Jlnping.
Both sides have accused each other of backing away from the May Geneva agreement, which temporarily suspended tariffs exceeding 100%. After the call, Trump expressed optimism: "I expect the London meeting to go very well."

U.S. Delegation Led by Bessent, Lutnick, and Greer to Face Chinese Vice Premier
The American delegation will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, who are expected to meet with Chinese Vice Premier He Lifeng.
Lutnick’s participation could indicate Washington’s willingness to reconsider certain export controls viewed by Beijing as obstacles to long-term economic growth.

Rare Earths: Leverage, Strategy, and Supply Chain Pressure
In May, China boosted rare earth exports by 23% to 5,864.60 metric tons — the highest monthly volume in a year — despite earlier restrictions. This suggests certain exceptions remain in place.
📉 In contrast, magnet exports, crucial for electric motors and semiconductor manufacturing, fell by half in April, disrupting several European factories and raising alarm bells among chipmakers about looming shortages.
So far in 2025, China has exported 24,827 tons of 17 rare earth minerals — slightly up from 24,266 tons in the same period last year.

Both Powers Signal Openness to De-escalation
While Washington wants rare earth flows restored and technical trade barriers lifted, Beijing seeks tariff relief, loosened export restrictions, and more openness toward Chinese students.
Xi Jlnping, after the phone call, said he hopes the U.S. will “remove negative measures taken against China.” China’s Foreign Ministry confirmed that Trump expressed a warm welcome for Chinese students studying in the U.S.
At the same time, Chinese state media criticized the U.S. for viewing economic ties through a national security lens. In a sharp editorial, Xinhua warned that this mindset is “the greatest barrier to mutually beneficial cooperation” unless it changes.

Tariff Decisions Loom as Clock Ticks
The current U.S. tariff waiver on Chinese goods is set to expire in August, unless extended. The White House has hinted that Trump may reinstate April's higher tariff rates or even exceed the current 10% baseline.
Although the Trump–Xi phone call sparked brief optimism on Wall Street, investors remain cautious. So far, Trump has secured only one new trade agreement during his term — with the United Kingdom.

China’s Internal Struggles Fuel Desire for Stability
Even as Beijing uses export limits as a bargaining chip, it also faces domestic pressures: persistent deflation and rising unemployment.
This makes a lasting truce in trade tensions more valuable for Xi’s administration. The London talks could mark a turning point — both sides have much at stake, and much to gain.

#TRUMP , #chinavsusa , #TradeWars , #TradingCommunity , #worldnews

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🔹 Donald Trump has been trying to get in touch with China’s President Xi for weeks — with no success.

🔹 Beijing is holding back due to concerns about Trump’s unpredictable behavior.

🔹 US-China tensions are escalating over tariffs, tech restrictions, and visa bans.

Donald Trump insists his personal relationship with President Xi should be enough to fix the ongoing US-China trade dispute. But reality paints a different picture — Xi hasn’t answered his calls. According to sources inside the White House, Trump has been trying to reach out for weeks with zero response.
Officials still hope a phone call might happen — maybe even this Thursday — but China has yet to confirm anything. When asked, the Chinese embassy in Washington simply said, “We have no comment,” maintaining total silence.
This lack of communication reveals just how distant the two sides have grown. And with rising tensions between the world’s top two economies, silence is adding more fuel to the fire.

Beijing Doesn’t Trust Trump — and That’s the Issue
CNN reports that Chinese officials are actively avoiding a call with Trump. The reason? They don’t trust him. They’ve seen how Trump handled private talks in the past — like the pressure he put on Ukraine’s Zelensky or South Africa’s Ramaphosa — and want to avoid a similar incident involving Xi.
Trump made those private moments public, turning them into awkward international headlines. China doesn’t want to risk the same thing happening — not even during a secure phone call.
Still, Trump keeps telling people he expects to speak with Xi “soon.” He’s said it in spring, last week, and even yesterday. But Beijing doesn’t work like his team does. Every meeting with Xi, even informal ones, are scripted down to the last detail — from timing and translation to flower arrangements.
People who’ve worked with Xi say he sticks to prepared talking points and rarely goes off-script. In fact, when he did make a spontaneous remark during a meeting with Biden, US officials saw that as an unusual sign of respect.
Trump’s direct and spontaneous deal-making style clashes with Xi’s tightly controlled approach. And that mismatch is making real communication nearly impossible.

Trade War Heats Up as Talks Stay Frozen
White House press secretary Karoline Leavitt said this week that Trump is “deeply involved in every policy decision,” especially regarding China. That includes the growing trade dispute, which escalated after Trump returned to office.
He raised tariffs up to 145%. China responded by slowing exports of critical minerals — especially materials vital to magnet production — and allegedly backtracked on agreements from earlier Geneva talks.
The two sides had agreed to lower some tariffs. That didn’t last. The US accused China of breaking the deal and blocking key shipments. Instead of progress, tensions grew worse.
Trump has since added new measures: canceling student visas for Chinese nationals and banning software exports used in advanced chip design. All this was meant to pressure Xi, but so far it hasn’t worked.
A senior White House official recently said, “Both trade teams have agreed this needs to go to the top.” Trump reportedly wants to confront Xi about the mineral issue and remind him that China has more to lose than the US if the deal fails — a belief strongly held within Trump’s inner circle.
Treasury Secretary Scott Bessent said over the weekend, “I’m confident that once President Trump and Chairman Xi talk, this will be resolved.” But that assumes Xi ever returns the call.
Trump hasn’t given up. Yesterday, he posted on Truth Social:

“I like President XI of China, always have, always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”

That pretty much sums it up — Trump wants action, and Xi isn’t even picking up the phone.

#TRUMP , #china , #usa , #Geopolitics , #TradeWars

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“