Trade continues to be one of the biggest issues in U.S. politics today. Another federal court decision (continuing Trump’s tariffs temporarily), greater use of export controls, as well as broader use of emergency powers of the president. Both the United States and the global trading system will be impacted depending how these items are handled by the federal courts (and hopefully by Congress). The latest Trump walk-back on tariffs demonstrate he doesn’t really have a viable China export policy.

………………………..

“A federal appeals court on Tuesday granted the Trump administration’s request to keep the president’s far-reaching tariffs in effect for now but agreed to fast track its consideration of the case this summer. The U.S. Court of Appeals for the Federal Circuit extended its earlier temporary pause of a trade court decision that found Trump exceeded his powers in imposing the tariffs. The appeals court said it intends to hear arguments on July 31, which means the tariffs likely will remain in effect for at least the next two months. All of the court’s active judges will participate in the case. The losing party is expected to seek review at the Supreme Court. “Appeal’s Court Extends Stay on Trump’s Tariffs.” Wall Street Journal (June 11, 2025).

“Citing this series of crises, Trump has sought to draw on emergency powers that Congress has scattered throughout the United States Code … upending the global economy with steep tariffs. Legal scholars say the president’s actions are not authorized by the statutes he has cited and are, instead, animated by a different goal. He is declaring utterly bogus emergencies for the sake of trying to expand his power, undermine the Constitution and destroy civil liberties.” “Trump Test Federal Power.” New York Times (June 11, 2025).

“An initial clash over tariffs has grown in recent months into a competition over which country can weaponize its export control over the other’s supply chains. China has clamped down on global shipments of rare minerals that are essential to building cars, missiles and a host of electronic products. The United States has in turn paused shipments to China of chemicals, machinery and technology including software and components to produce nuclear power, airplanes and semiconductors.” “China and U.S. Export Controls.” New York Times (June 11, 2025).

“China and the U.S. appear to be resetting their trade relationship to where it was a few months ago before a tit-for-tat escalation. Trump had agreed to reduce tariffs on China to 30% (55% including those he imposed during his first term) from 145% while China dropped its tariffs on U.S. goods to 10% from 125% …. But Beijing continued to leverage its stranglehold on rare-earth minerals …. Beijing will ease its restrictions on rare-earth minerals, but the U.S. will keep its export controls on advanced chips ….  Trump’s export controls harmed American businesses as well as the Chinese. …. This gets to the larger problem with Trump’s tariff strategy—that is, he doesn’t have one. His latest walk-back shows he can’t bully China as he tried to do in his first term.” “Trump Has No China Trade Strategy.” Wall Street Journal (June 12, 2025).

“For years, officials in Washington have used export controls to slow China’s ability to develop cutting-edge technologies …. When officials from the United States and China met this week in London to try to work out their differences over trade, export controls were again front and center …. Trump kicked off a trade war with Beijing in 2018 when he put tariffs on solar panels imported from China …. Trump administration first used export controls to impede the development of a Chinese tech company in 2018, when it barred American firms from selling to the Chinese electronics firm ZTE …. Then in 2019, the Trump administration added the telecommunications giant Huawei to a trade blacklist that barred U.S. companies from selling parts to the company …. President Joseph R. Biden Jr. substantially expanded Washington’s use of export controls. The goal shifted from targeting specific Chinese firms to constraining China’s overall advancement in technologies …. Since taking office a second time in January, Mr. Trump has ended a sweeping rule governing how American-made A.I. chips could be shared with foreign countries that was put in place at the end of Mr. Biden’s term …. U.S. officials have also taken steps to crack down on the flow of chips to China from America’s leading chip maker, Nvidia.” “U.S. China Tech Race (Export Controls / Entity List).” New York Times (June 13, 2025).

“Washing machines, refrigerators and other common household appliances made with steel parts will soon be subject to expanded tariffs …. The higher metal levies have already rankled close allies that sell to the United States, including Canada, Mexico and Europe.” “New Steel Tariffs on Home Appliances.” Wall Street Journal (June 14, 2025).