Washington Update

The Commerce Department’s Bureau of Industry and Security on Tuesday published an interim final rule broadening the reach of its export controls blacklist. Under the new provision, any entity that is at least 50% owned by one or more entities on the list will itself automatically be subject to Entity List restrictions.

Senior executives of USCBC member companies on Thursday met with Chinese Premier Li Qiang in New York. Members discussed market access issues and the need for a level playing field and predictable, stable business environment for US companies in China. They also highlighted the importance of ongoing dialogue between senior US and Chinese leaders.

Top US and Chinese trade officials met in Madrid earlier this week, with TikTok the center of discussions. Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer led the US delegation, while Vice Premier He Lifeng and Li Chenggang, China’s chief trade negotiator, led the Chinese side.

Trump issued an executive order last Friday modifying the scope of his reciprocal tariffs to expand exemptions for trading partners. It adds to the list of products exempted from these tariffs due their being impacted by pending or future Section 232 actions — such as certain critical minerals, chemicals, and solar cells — while removing other products like silicon, resin, and aluminum.

President Donald Trump on Wednesday asked the Supreme Court to rule on the legality of his tariffs. The request follows a federal appeals court ruling last Friday that the president lacks authority under the International Emergency Economic Powers Act to impose reciprocal and fentanyl-related tariffs.

Senior Chinese trade negotiator Li Chenggang is meeting with US government officials in Washington this week following the 90-day trade truce extension announced earlier this month. Li is expected to speak with deputies from the Treasury Department and the Office of the US Trade Representative (USTR). It is unknown whether discussions will include senior US officials.

President Donald Trump on Monday extended the US-China trade talks deadline until November 10. Existing baseline US tariffs on Chinese imports will remain at 30% (a 10% reciprocal tariff plus a 20% fentanyl tariff).

The administration has signaled that an extension to the August 12 tariff deadline will be announced soon following trade talks between US and Chinese officials in Stockholm last week. President Donald Trump indicated on Tuesday that he was “getting very close to a deal” with China to extend the deadline. USCBC understands that an executive order extending the deadline by 90 days has been drafted.

US and Chinese trade officials met in Stockholm over Monday and Tuesday and discussed extending the August 12 trade deal deadline another 90 days pending President Donald Trump’s approval. The president was due to be briefed on the meetings on Wednesday, but the White House has yet to announce a decision on the extension.

Treasury Secretary Scott Bessent hinted on Tuesday that the August 12 deadline for bilateral trade negotiations is likely to be extended following discussions with Chinese counterparts in Stockholm over July 28 to 29. Bessent also noted that he hopes to discuss China’s “glut of manufacturing” and the need to focus on “a consumer economy,” as well as China’s purchases of Russian and Iranian oil.