Tag: trade policy

  • U.S. and China Reach Tariff Framework and Launch First AI Dialogue

    U.S. and China Reach Tariff Framework and Launch First AI Dialogue

    China and the United States have reached agreement on several economic and trade issues after their latest consultations in New York, China’s Ministry of Commerce said. The talks produced a proposed reciprocal tariff reduction and opened the first formal bilateral dialogue on artificial intelligence under the two countries’ economic and trade consultation framework.

    Tariff framework targets USD 30 billion in goods on each side

    The proposed framework would lower tariffs on selected products worth USD 30 billion on each side. China’s commerce ministry had previously indicated that the two governments were working toward an arrangement covering goods of equivalent value. The plan is intended to ease trade barriers between the world’s two largest economies, but it is not an immediate, across-the-board tariff cut. Specific products and implementation steps remain under negotiation, and the ministry said it would provide further updates as work progresses.

    New trade and investment councils proposed

    Beyond tariffs, the discussions covered implementation of existing agreements and the creation of trade and investment councils. Those bodies would give both sides a regular mechanism for addressing economic concerns and reviewing earlier arrangements.

    First AI dialogue brings technology governance into trade talks

    Chinese Vice-Premier He Lifeng and U.S. Treasury Secretary Scott Bessent, who lead their countries’ economic teams, held the first AI dialogue under the economic and trade consultation mechanism. The two governments had already agreed to establish an intergovernmental dialogue on AI, with earlier discussions covering technological risks and global AI governance. AI has become a central part of the broader relationship as the two countries compete in advanced technology and weigh the risks of increasingly capable systems.

    Trade tensions remain unresolved

    The consensus marks another step in managing a complex relationship rather than a full resolution of outstanding disputes. Tariffs, trade barriers, and other economic issues remain on the agenda, and earlier arrangements are being extended or reviewed. Both sides are expected to continue talks through existing consultation channels.

    For businesses, the proposed tariff reductions could eventually bring more clarity on selected product categories if the framework moves into implementation. The formal AI dialogue also gives Beijing and Washington an additional channel to discuss technology risks, governance, and wider implications.

  • Small Businesses Launch New Court Battle Against Trump’s Latest Tariffs

    Small Businesses Launch New Court Battle Against Trump’s Latest Tariffs

    A fresh wave of legal challenges has emerged against President Donald Trump’s newest tariff measures, as small businesses file lawsuits arguing the administration overstepped its authority. The cases, filed in the US Court of International Trade, target import duties imposed on goods from dozens of trading partners.

    Two separate lawsuits have been filed since the tariffs took effect. Educational toy company Learning Resources, which previously challenged Trump’s tariff policy, brought one action. The second was filed by New York spice importer Burlap & Barrel and California watch retailer Collective Horology, represented by the Liberty Justice Center.

    The plaintiffs contend that the administration failed to justify the tariffs on a per-country basis and did not adequately explain how the duties would address forced labor concerns, a requirement under Section 301 of the Trade Act of 1974. They argue the new tariffs effectively replace the worldwide duties the Supreme Court invalidated earlier this year, and that changing the legal basis does not resolve the court’s concerns about presidential authority.

    The Trump administration defends the measures, stating they target nations that have not prevented imports linked to forced labor. The tariffs apply to imports from 60 trading partners and cover nearly all US imports.

    Trade lawyers note that these challenges may face a tougher path than previous cases. Unlike earlier tariffs, the latest duties rely on Section 301, a trade law that has historically survived court scrutiny and was widely used during Trump’s first term. Legal experts predict the tariffs could remain in place for an extended period while the cases proceed, with relief requiring countries to prove effective enforcement of US demands.

    The lawsuits add to ongoing legal and political battles over Trump’s trade agenda, with businesses warning that prolonged uncertainty could disrupt imports, costs, and investment decisions.