U.S., China Near Trade Agreement as Tariff Deadline Looms

- Negotiators push for trade deal ahead of August 12 tariff deadline. - Legal challenges to presidential tariff authority complicate U.S. policy. On July 31, 2025, CNBC’s “Squawk Box” reported that U.S. Treasury Secretary Scott Bessent announced significant progress in trade negotiations between the United States and China. Bessent stated that both nations are moving closer to finalizing a trade agreement, which, if successful before the August 12 deadline, would prevent tariffs from returning to their previously elevated levels. Despite his optimism, Bessent acknowledged that some technical details remain unresolved and noted that President Donald Trump has yet to approve the deal, intending to personally sign off on any final agreement. Bessent described the negotiations in Stockholm as tough. The recent progress is part of a temporary truce in the ongoing tariff war, which has seen U.S. tariffs on Chinese imports stand at 30%, down from a high of 145%. China’s retaliatory tariffs are currently at 10%, reduced from 125%. Failure to finalize an agreement by the August 12 deadline could cause these rates to revert to their earlier levels, potentially reigniting economic tension between the world's two largest economies. Meanwhile, the Trump administration’s authority to impose tariffs faces legal scrutiny. On the same day, a federal appeals court began hearing oral arguments in *V.O.S. Selections v. Trump*, a case challenging the legality of the president’s use of the International Emergency Economic Powers Act (IEEPA) to implement tariffs. The legal dispute was brought by small businesses and several states claiming the tariffs caused them economic harm. The U.S. Court of International Trade had previously ruled against Trump’s use of IEEPA for this purpose but stayed its decision pending the appeal. The U.S. Court of Appeals for the Federal Circuit livestreamed the hearing, which underscores the complexity of the administration’s tariff policy and its economic implications. In the cryptocurrency market, CoinMarketCap reported that as of 16:00 UTC on July 31, Bitcoin (BTC) was trading at $29,134, with its 24-hour trading volume having increased by 1.8%. The report also showed Ethereum (ETH) priced at $1,913, with its 24-hour trading volume up by 2.5%.