US-China Agree On Roadmap To Ease Trade Friction, Even As Appeals Court Backs Trump Tariffs

The U.S. and China made some headway on the second day of their trade talks held in London, with both sides confirming the same. Separately, President Donald scored a victory as a U.S. Appeals Court ruled to keep his“Liberation Day” tariffs in place.

Bloomberg reported that the U.S. Commerce Secretary Howard Lutnick said,“We have reached a framework to implement the Geneva consensus.” Lutnick spoke to reporters after the two sides negotiated for about 20 hours over two days in a mansion near Buckingham Palace.

Meanwhile, China's top trade negotiator, Li Chenggang, said the two delegations will discuss the proposals with their respective leaders, Trump and Chinese President Xi Jinping.

This was confirmed by Lutnick, who said,“ Once the presidents approve it, we will then seek to implement it.”

The Commerce Secretary also expressed confidence that the central area of contention, namely the disagreement over rare earth exports, will be resolved.“We do absolutely expect that the topic of rare Earth minerals and magnets with respect to the United States of America will be resolved in this framework implementation,” he said.

Lutnick also assured that some measures the U.S. had put in place in retaliation for China's rare earth restrictions would come off.  “When they approve the licenses, then you should expect that our export implementation will come down as well,” he said.

U.S. Trade Representative Jamieson Greer said,“In eight years of negotiating with the Chinese, I've never had a meeting where they didn't want to talk about export controls.”

Greer clarified that no further meetings were scheduled between both sides, but that the countries talk frequently and should be able to do so whenever they need to.

Meanwhile, the U.S. Court of Appeals for the Federal Circuit ruled on Tuesday to extend an earlier stay granted in the case brought against President Trump and the government by some small businesses and Democrat-led states regarding the tariffs.

The court also put the case on an expedited schedule, citing“issues of exceptional importance” at stake, with the oral arguments now set for July 31.

The Washington-based court's ruling came after the Justice Department filed its arguments on Monday, calling for an extended stay of a lower court ruling that nullified the Trump tariffs. 

The government reasoned that blocking tariffs would diminish“America's bargaining position during sensitive trade negotiations, encouraging other countries to hold our nation hostage and catastrophically harm our economy.”

The Invesco QQQ Trust (QQQ) ETF and the SPDR S & P 500 ETF (SPY) are up 4.7% and 3.2%, respectively, for the year, while the iShares MSCI China ETF (MCHI) has gained a steeper 19%.

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