China and ASEAN Conclude Free Trade Agreement Upgrade as U.S. Appeals Court Temporarily Reinstates Trump-Era Tariff Policies

On May 29, the spokesperson of the Ministry of Commerce, He Yadong, announced at a routine press briefing that China and the ten ASEAN countries had officially concluded negotiations on Version 3.0 of the China-ASEAN Free Trade Area (CAFTA). This milestone achievement follows over two years of intensive consultations and marks a significant development in regional economic integration.

The upgraded agreement includes nine new chapters, covering areas such as the digital economy, green economy, supply chain connectivity, and standards, technical regulations, and conformity assessment procedures. These additions are expected to broaden cooperation in emerging sectors and new-quality productive forces, deepen industrial and supply chain integration between China and ASEAN, and contribute to the creation of a large-scale regional market. Amid rising global trade uncertainties caused by unilateralism and protectionism in certain countries, the conclusion and upcoming implementation of CAFTA Version 3.0 is seen as a stabilizing force for regional and global trade, bolstering confidence in economic recovery and cooperative development.

Looking ahead, both parties will leverage the upgraded framework to promote wider and deeper regional economic cooperation, supporting the building of a China-ASEAN community with a shared future and driving mutual prosperity.

Meanwhile, in the United States, the Trump administration secured a procedural victory on the same day. The U.S. Federal Court of Appeals temporarily suspended a previous ruling by the Court of International Trade that had blocked several executive tariff orders. The appeals court stated that the lower court’s rulings and permanent injunctions would be paused pending further notice, while it considers a longer-term suspension. The court ordered the plaintiffs to respond by June 5 and the administration to reply by June 9.

This move follows a May 28 decision by the U.S. Court of International Trade in New York, which deemed the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) as exceeding presidential authority and thus unlawful. The ruling asserted that Congress's delegation of unchecked tariff powers to the president violated constitutional limits, allowing the government ten days to begin halting the contested tariffs. Additionally, another federal court had earlier issued a narrower ruling restricting tariffs on two Illinois-based toy importers.

The Trump administration indicated its intention to appeal to the Supreme Court if a stay was not granted. White House officials emphasized their resolve to uphold the tariff measures, citing national security and economic concerns. According to a related analysis, the tariffs have cost U.S. businesses over $34 billion in lost sales and higher expenses, with continued uncertainty affecting major corporate decisions.

As the U.S. prepares for upcoming trade negotiations with Japan and India, the temporary stay offers the administration some reprieve during ongoing legal proceedings.