Washington Update

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.

Two major US semiconductor suppliers on Tuesday announced that US officials had given them permission to resume exporting advanced H20 and MI308 chips to China, reversing a ban imposed in April. In an interview on Tuesday, Treasury Secretary Scott Bessent suggested that the decision was part of trade talks in Geneva and London.

President Donald Trump announced on Tuesday that the United States would impose 50% tariffs on copper and tariffs on pharmaceuticals, potentially at a rate of 200%. While Trump clarified on Wednesday that the copper tariffs begin August 1, the timeline for the tariffs on pharmaceuticals is less clear.

Six Chinese government agencies issued a joint statement on Monday adding two precursor chemicals (4-piperidone and 1-tert-butoxycarbonyl-4-piperidone) to a list of Class Two chemicals that will be subject to tougher supervision starting July 20.