US Treasury Secretary Scott Bessent told Fox News on Thursday that trade talks between the US and China are “a bit stalled,” saying a call between President Trump and China’s Xi Jinping may be needed to reach a deal.
Bessent’s comments come as the US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — looks more fragile amid both trade-related and other tensions.
Meanwhile, Trump’s most sweeping tariffs have entered a period of legal uncertainty. A federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”
That means Trump’s tariff agenda remains intact, if in flux, in the latest twist in the unfolding legal saga.
Late Wednesday, the trade court voted to block many of Trump’s tariffs, including the flat-rate “reciprocal” tariffs aimed at US trade partners, as well as key China-focused duties. The decision left some levies intact, specifically those covering steel, aluminum, and certain Chinese goods.
The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps.
The White House had vowed Thursday to take its appeal to the Supreme Court if necessary.
Administration officials also hinted that court rulings would not be the final say for a president who has based much of his economic agenda on enacting the tariffs. Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.
Amid the legal chaos, US trade negotiations have apparently continued in earnest this week, with an FT report on Wednesday saying India has offered the US steep tariff cuts but is seeking to retain high duties on some agricultural commodities.
India is not the only trading partner seeking a reprieve. On Wednesday, the EU trade chief Maroš Šefčovič said the European Commission is discussing with the US possible cooperation in sectors such as semiconductors, steel, and aerospace.
Here are the latest updates as the policy reverberates around the world.
Chinese tech groups prepare for AI future without Nvidia
Some of China’s biggest tech companies have started to switch development of their artificial intelligence to homegrown chips as opposed to using semiconductors from America, due to the US export controls — which has led to a dwindling stockpile of Nvidia (NVDA) processors.
A federal appeals court has temporarily reinstated President Trump’s global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now.
The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps.
As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected.
Legal experts say it’s unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way.
Thu, May 29, 2025 at 7:07 PM UTC
Trump tariff setback could hasten US debt ceiling deadline: Barclays
Analysts are raising concerns about how a new court ruling against President Trump’s tariffs could force the U.S. government to raise the debt ceiling.
Trump takes aim at Chinese students and tech, threatening to upset truce with Xi
Tensions between the US and China are rising again after the Trump administration announced it would revoke Chinese student visas, restrict chip design software, and try to block Huawei from selling advanced AI chips globally.
Per Bloomberg, China’s Foreign Ministry called the crackdown on student visas “discriminatory” on Thursday but did not move to immediately retaliate, signaling it was trying to avoid the kind of rapid escalation that brought tariffs to triple-digit levels.
Still, the divide shows that the two countries are far from resolving their issues — chiefly tech competition — and coming to a trade agreement.
Trump has yet to speak with Chinese leader Xi Jinping in his second term, despite hints a few weeks ago after top officials met in Geneva that a call was imminent.
The Manhattan-based court ruled that many of Trump’s wide-ranging tariffs, including the 10% “reciprocal” tariffs, were unlawful in a decision that the administration is expected to appeal.
Taiwan is pushing for tariffs lower than the 10% base rate,
HP plunges after cutting profit outlook on tariffs, economy
Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company’s profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China.
Court’s tariff ruling spells short-term pop, long-term angst for markets
Markets may be celebrating the latest turn in the tariffs saga, but the US trade court’s block isn’t definitive — and that means there’s still cause for concern, some analysts say.
Trump’s tax and spending bill would raise some tariffs as well
President Trump’s tariff plans appear to be hanging by a thread after the US Court of international Trade deemed them “unlawful.” However, his other big priority, a tax and spending bill, could help advance his tariff plans, if it ever gets off the ground.
UK seeks to speed up implementation of US trade deal
Britain and the US will hold talks next week in an attempt to speed up implementation of the trade pact the two sides agreed on this month. The FT reported on Thursday that there is uncertainty surrounding the deal and when American tariff cuts for UK carmakers and steel manufacturers will actually take effect.
