Trump Faces Challenges Ahead of Summit with China's Xi Amid Trade Turmoil
In the run-up to the anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping, tensions over tariffs and defense issues are casting a shadow over the proceedings. Several Asian economies, including Japan, are closely monitoring this situation due to its potential impact on their own trade relations with the U.S.
Background and Context
Trump’s planned meeting with Xi is expected to be a grand spectacle, but the mood could be dampened by the ongoing trade disputes and defense tensions, reported by the New York Times. These issues have been further complicated by recent rulings on tariffs and the potential delay in arms sales to Taiwan under pressure from Beijing.
Key Developments
The U.S. Supreme Court recently struck down Trump's sweeping Liberation Day
tariffs under the International Emergency Economic Powers Act, stating that the Constitution gives Congress, not the president, authority over tariffs, as reported by Fox News. Despite this setback, there are still legal avenues that could allow Trump to reassert aggressive trade powers.
In the meantime, the Trump administration's tariff reversal has seemingly given Xi an upper hand before the summit, according to the Japan Times. This situation has been described as 'messy' by Itsunori Onodera, a former Japanese defense minister who currently chairs the party's tax research group.
However, despite the tariff ruling, Japan pledged to keep its investment commitment to the U.S., with some Japanese companies even suing the U.S. government over the tariffs in hopes of a refund, as detailed by Japan Times.
Implications and Reactions
The impact of these developments is being felt across the globe. The Le Monde has questioned the U.S.'s position, pointing out that if the EU were to impose tariffs on Chinese imports, it would be counterproductive for the U.S. to criticize them for doing the same. At the same time, La Repubblica reported a boost in the markets due to the halt on tariffs.
Further complicating matters is the defense issue. The South China Morning Post reported that the White House declined to comment on reports that Trump is considering canceling or delaying a $11 billion arms package to Taiwan, a move that could potentially disrupt the planned summit with Xi.
Conclusion
Despite the ongoing trade wars, Trump and Japan's Prime Minister Sanae Takaichi have pressed ahead with a trade and economic pact, unveiling the debut projects of a $550 billion investment fund, as reported by the South China Morning Post. However, with the looming summit and the complicated web of international trade relations, the global economy hangs in the balance.