US Reaches Trade Deal Framework with China; Bessent Testifies on Tariffs

Reported Trade Deal Framework with China

• 🤝 President Trump announced a reported trade deal framework with China, which he described as a "great win for both countries."
• 🇨🇳 While China's president has not publicly signed off, the framework reportedly includes a return to tariffs negotiated last month: 55% on Chinese goods entering the US and 10% on American goods entering China.
• 🎓 Restrictions on Chinese students coming to the US for university are expected to be pulled back.
• 💎 China has reportedly promised to export rare earth minerals to the US at a steadier rate.

Treasury Secretary Bessent's Testimony

• 🎤 Treasury Secretary Scott Bessent testified before a House panel, having flown back from London trade talks.
• ⚠️ Bessent expressed a cautious tone regarding trusting China to uphold its end of the bargain, emphasizing the need for China to be a reliable partner.
• 🌍 He believes that if China "course corrects" and upholds the initial trade agreement, rebalancing the world's two largest economies is possible.

Tariffs and Legal Challenges

• ⚖️ A federal appeals court has ruled that Trump's global tariffs can remain in place while legal challenges continue.
• 🗓️ This ruling is temporary, with a court date set for July 31st to address challenges arguing the tariffs were illegally imposed by declaring an emergency.
• ✅ The court's decision represents a temporary win for the administration, allowing tariffs to stay in effect until the legal challenge is resolved.