US Treasury Secretary Scott Bessent reported that the US and China are on track to reach a trade agreement, although final conditions are still unresolved.
Negotiations Under Pressure of Temporary Measures
Scott Bessent stated on CNBC’s *Squawk Box* that the parties are close to a deal, but there are technical details to be worked out. The existing pause on tariffs expires on August 12, when current reduced rates could revert. The U.S. has reduced tariffs from 145% to 30%, while China has lowered its tariffs from 125% to 10%.
Challenges in the Deal and Trump's Final Approval
Bessent noted that a final agreement is not yet reached as he has not discussed the details with President Trump. The negotiations were tough, with both sides prepared for hard discussions. Trump had previously stated that any final agreement must be directly approved by him.
Legal Aspects of Trump's Tariffs
While negotiations continue, a separate legal battle may complicate Trump’s approach to tariffs. The U.S. Court of Appeals is hearing V.O.S. Selections v. Trump, questioning the president's legal authority to implement tariffs. Former U.S. Solicitor General Neal Katyal noted that the power to levy and modify tariffs lies strictly with Congress.
Trade negotiations between the US and China are ongoing amid legal disputes that could impact the economic policy of the Trump administration.
