President Trump and Chinese leader Xi Jinping held their first call Monday since the US and China struck a trade and tariff truce last month.
The two leaders discussed several areas of bilateral and geopolitical tension, according to readouts, including China’s purchases of US soybeans and the self-governing island of Taiwan. Trump touted the call as “very good,” and said he had accepted an invitation to visit Beijing in April and that Xi would reciprocate with a visit to the US later next year.
“Now we can set our sights on the big picture,” Trump said.
Meanwhile, friction between the US and EU continues to build as the two nations look to implement the framework agreement struck earlier this year. The EU is seeking lower tariffs on certain goods, like steel and aluminum (both of which currently remain at 50%), but it rejected a demand to ease tech rules. The EU says its “digital rulebook” is not aimed at US tech companies.
The White House is quietly preparing a backup plan as the US Supreme Court is set to decide whether Trump had the authority to issue them in the first place.
The replacement plans, which may face their own legal challenges, are a sign the White House is getting ready behind the scenes for SCOTUS to rule against the tariffs, even as the president remains optimistic publicly. Trump on Monday claimed the “full benefit” of tariff policies would take effect soon, arguing that foreign buyers who stockpiled inventory would be forced to buy more goods.
“Tariffs will be paid on everything they apply to, without avoidance, and the amounts payable to the USA will SKYROCKET,” Trump wrote.
The president invoked the International Emergency Economic Powers Act (IEEPA) to levy blanket tariffs on goods from other countries. But Congress is the branch of the US government with oversight of taxation and spending — not the president. It’s not clear when SCOTUS will make its ruling.
Meanwhile, Trump further expanded tariff breaks on Brazilian goods, part of moves to lower costs on some everyday goods as consumers grapple with price struggles. The move came a week after he signed a similar order more broadly reducing tariffs on goods including beef, tomatoes, coffee, and bananas.
The push to reduce food prices comes after electoral wins for Democrats across a number of key state and local races where candidates stressed affordability concerns. Trump has also in recent weeks floated the possibility of a tariff “dividend” for many Americans in the form of a $2,000 check.