Tag: U.S.–China trade relations

On June 3, 2025, the Nasdaq Composite advanced despite the Organization for Economic Cooperation and Development (OECD) revising down its 2025 U.S. growth forecast (The Wall Street Journal, 2025). This juxtaposition raises critical questions about the interplay between financial market performance and underlying economic fundamentals. At issue is whether stock market indices truly reflect long-term economic health or if they instead signal investor optimism in the face of policy uncertainties. Observers must consider not only corporate earnings and Federal Reserve monetary policy but also the legal framework governing trade, fiscal stimulus, and regulatory oversight.

On March 10, 2025, The Wall Street Journal reported that high‐level envoys from the United States and China engaged in exploratory discussions to arrange a bilateral summit between President Donald J. Trump and President Xi Jinping in mid‐June (Wall Street Journal, March 10, 2025). At stake are deeply entrenched legal, constitutional, and policy tensions involving trade sanctions, national security prerogatives, and Congress’s oversight role. This developing episode raises core questions under the U.S. Constitution—specifically, the President’s power to negotiate foreign agreements in light of statutory constraints and Congressional authority over tariffs and commerce (U.S. Const. art. II; Trade Act of 1974 § 151).