[Text/Observer Network Xiong Chaoyi] Local time on June 1st, Kevin Hassett, Director of the White House National Economic Council, told the host George Stephanopoulos of ABC's "This Week" program that he expected China and the United States to hold talks on tariff issues this week.

Hassett said he was not sure about the specific date of the expected talks, but both sides were expected to express a willingness to negotiate. He added that both sides were in constant dialogue every day, with the team of U.S. Trade Representative Jamieson Greer and the Chinese team communicating daily to try to make progress on this matter.

From May 10th to 11th, high-level economic and trade talks between China and the United States were held in Geneva, during which both sides agreed to reduce tariffs within 90 days, lowering the tax rate by 115%. Reuters pointed out at the time that the talks held in Geneva were the first face-to-face meeting between officials from both countries after U.S. President Trump launched the tariff war.

On June 2nd, the spokesperson for China's Ministry of Commerce stated that China, with a responsible attitude, seriously addressed, strictly implemented, and actively maintained the consensus of the Geneva economic and trade talks. China is determined to uphold its rights and faithfully implement the consensus. In contrast, the U.S., after the Geneva economic and trade talks, successively introduced discriminatory restrictive measures against China, including issuing export control guidelines for AI chips, halting sales of chip design software (EDA) to China, and announcing the revocation of visas for Chinese students. These actions severely violate the consensus reached during the phone call between the leaders of the two countries on January 17th, seriously undermine the existing consensus of the Geneva economic and trade talks, and severely damage China's legitimate rights and interests. The U.S. has unilaterally initiated new economic and trade frictions, increasing the uncertainty and instability of bilateral economic and trade relations. Instead of reflecting on itself, it has unjustly accused China of violating the consensus, which seriously deviates from the facts. China firmly rejects such unreasonable accusations.

White House National Economic Council Director Kevin Hassett ABC Video Screenshot

ABC reported that currently, Trump's tariff measures are facing a series of legal challenges.

Local time on May 28th, the U.S. Court of International Trade blocked the tariff policy announced by Trump on "Liberation Day" on April 2nd from taking effect and ruled that Trump's tariff policy was "ultra vires." According to reports from the Associated Press and Reuters, the U.S. Court of International Trade in New York stated on the same day that the U.S. Constitution grants Congress exclusive power to regulate trade with other countries, and the president's emergency powers claimed to protect the U.S. economy cannot override these powers.

Local time on May 29th, the U.S. Court of Appeals for the Federal Circuit approved the request made by the Trump administration to temporarily suspend the previous court's ruling prohibiting the implementation of the administrative order imposing tariffs on multiple countries based on the International Emergency Economic Powers Act (IEPA). The U.S. Court of Appeals also ordered both parties to submit written arguments regarding the issue of preventing the collection of tariffs, with relevant documents due to be submitted early next month. Afterward, the court will decide on the next steps.

When asked whether he had confidence in the U.S. Supreme Court maintaining the tariff measures, Hassett insisted that, according to the assessment of U.S. Trade Representative Greer, the current plan advanced by the Trump administration under the IEPA was not only the most efficient but also the most legally sound. "Therefore, we are confident - we believe the courts will support this legitimate action. This is our A plan, and we firmly believe there is no need for a backup plan."

Last month, just as the U.S. Court of Appeals temporarily reinstated the tariff measures, it was revealed that the Trump trade team was reportedly working on a backup plan for the tariff policy to avoid negotiations being disrupted due to legal challenges.

On May 30th local time, The Wall Street Journal cited sources as disclosing that the Trump team was weighing a two-step approach: the first step was to consider invoking Section 122 of the Trade Act of 1974 to impose a maximum tariff of 15% on a global scale, limited to 150 days, to address "trade imbalances" between the U.S. and other countries; the second step was to formulate personalized tariffs for each major trading partner under Section 301 of the aforementioned law within these 150 days.

The sources also said that the discussions were still ongoing, and the Trump administration had not yet made a final decision. Considering that the appeals court temporarily allowed the tariff measures, the Trump team might also delay implementing any alternative plans.

However, Peter Harrell, former senior director of international economics at the National Security Council of the Biden administration, stated that although the legal basis for Sections 122 and 301 is stronger than that of the IEEPA tariff reasons, Trump's alternative plan may still face legal challenges.

On June 2nd, the spokesperson for China's Ministry of Commerce emphasized that the Joint Statement of the Sino-U.S. Geneva Economic and Trade Talks was an important consensus reached under the principles of mutual respect and equal consultation. The results were hard-won. We urge both sides to move toward each other, immediately correct the erroneous practices, jointly maintain the consensus of the Geneva Economic and Trade Talks, and promote the healthy, stable, and sustainable development of Sino-U.S. economic and trade relations. If the U.S. persists in its own way and continues to harm China's interests, China will continue to take resolute measures to safeguard its legitimate rights and interests.

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Original source: https://www.toutiao.com/article/7511169977735463443/

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