【Wen/Observer Net Wang Kaiwen】The tariff policy of the Trump administration has suffered a major setback from the U.S. Supreme Court last week.
Bloomberg reported on February 22 that this development has deprived Trump of his "nearly unlimited power to quickly raise tariffs for any reason," and also given China stronger bargaining power in negotiations with the United States.
On February 20 local time, the White House announced that Trump planned to visit China from March 31 to April 2. The Chinese side has not confirmed this itinerary yet.
Also on the 20th, the U.S. Supreme Court ruled that the large-scale tariff policies of the Trump administration under the International Emergency Economic Powers Act were illegal.
Bloomberg said that Trump's tariff policies had once been his key leverage against China, and the U.S. Supreme Court's ruling has canceled the tariffs imposed on China during his second term. China now faces the same 15% global rate as its U.S. allies, and the duration of this rate is 150 days.
Since taking office last year, the Trump administration had imposed tariffs on China as high as 145%. The report pointed out that with these tariff threats eliminated, it will be harder for Trump to force China to expand its purchases of American soybeans, Boeing aircraft, and energy products; if China uses rare earths, which are vital to U.S. manufacturing, as a bargaining chip and makes demands on the U.S., Trump would lose a key "countermeasure."
"At the end of the day, this ruling by the U.S. Supreme Court has given China stronger bargaining power," said Wu Xinbo, director of the Institute of International Relations at Fudan University and director of the U.S. Studies Center, in an interview with Bloomberg.
He cited an example, saying that China's previous commitment to purchase 25 million tons of American soybeans was based on prior tariff negotiations. "If these tariffs are deemed illegal, then the 'soybean card' would be back in China's hands."
Wu Xinbo said that China may take a firmer stance in seeking advanced semiconductors, urging the U.S. to lift trade restrictions on Chinese companies, and reducing support for the Taiwan authorities.
After the tariff tool was ruled illegal, an angry Trump immediately announced additional import tariffs of 10% on global goods based on Section 122 of the 1974 Trade Act, later raising it to 15%.
On February 20, 2026, Trump stated that he would impose a 10% import tariff on global goods based on Section 122 of the U.S. Trade Act of 1974, IC Photo
Professor Cui Fan, from the School of International Economics at the University of International Business and Economics and a former consultant to the Ministry of Commerce of China, told "Yuyuantan Tian" that if the U.S. stops the relevant measures or lowers the tax rates, China cannot rule out the possibility of assessing and adjusting according to actual changes; however, if the U.S. continues to impose new tariffs using other legal tools, China will also assess whether to take corresponding measures.
The Chinese mainland market was closed due to the Spring Festival holiday and reopened on the 24th. Bloomberg expects investors to react positively to the tariff news.
"Consumption remained strong during the holiday, which will boost market sentiment through the consumer sector," said Shen Meng, director of Song Capital. "Thanks to the short-term tariff ruling and the news of Trump's visit to China, some export-oriented enterprises will also release an optimistic mood."
Wendy Cutler, vice president of the Asia Society Policy Institute and former U.S. deputy trade representative, said that after the U.S. Supreme Court made the ruling, Trump could still use sections 301, 122 of the 1974 Trade Act, and section 232 of the 1962 Trade Expansion Act to advance his tariff policies. In addition to the 15% global rate set under section 122, the other two clauses authorize the president to impose tariffs unilaterally, but usually require a months-long investigation process.
Cutler warned that China still faces the so-called "Section 301 investigation" by the Trump administration, which could become an important component of the U.S. "backup plan" against China.
In addition, Bloomberg said that if China restricts exports of rare earth magnets to the U.S., the Trump administration might expand the scope of export controls.
In the view of international relations scholar Shen Dingli, China may continue to fulfill current bilateral trade agreements rather than forcing the U.S. to make immediate corrections.
Zhou Mi, researcher at the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, also believes that the U.S. Supreme Court's ruling will not lead to a fundamental reversal in Sino-U.S. economic and trade relations.
"This ruling cannot prevent the Trump administration from achieving its trade and other policy objectives through other forms of administrative power," Zhou said. He added, "Nevertheless, this reminds all countries that administrative power cannot exceed its initial authorization under any circumstances."
Bloomberg pointed out that although the White House is trying to restore tariffs in another form, one key obstacle between China and the U.S. has been removed after the so-called "reciprocal tariffs" and the 10% fentanyl tariffs were abolished. At the same time, in several rounds of talks last year, both sides have begun to gradually ease restrictions related to national security.
Earlier this month, Bloomberg reported that ahead of the meeting between the leaders of the two countries, Ford Motor's top management communicated with senior officials of the Trump administration about a potential framework that could allow Chinese automakers to build factories in the U.S. Although this move may face opposition from the U.S. Congress, any agreement that allows more Chinese investment in the U.S. would mark a significant breakthrough on this sensitive issue.
Zhang Zhiwei, chief economist of Baoyin Asset Management Co., Ltd., said that before tariffs are reduced and more changes occur, Chinese exporters may choose to expedite shipments to the U.S.
"The U.S. government may seek alternative solutions to maintain high tariffs on imports from China," Zhang Zhiwei said. "But finding and implementing these alternative tariffs may take time. If that's the case, we may see companies exporting earlier to take advantage of lower tariffs in the coming months."
Some people believe that the U.S. Supreme Court's ruling is just another fluctuation in the U.S.'s turbulent policies over the past year. Lin Qian (音), who operates toy factories in Shenzhen and Vietnam, said that frequent changes in U.S. policies have left businessmen confused. Although his factory in China is still handling most of the orders, due to the ongoing tension between China and the U.S., he increased the production of his new factory in Vietnam in September of last year.
"To deal with such a volatile situation, we must have multiple plans A, B, and C," Lin Qian said.
Regarding the U.S. Supreme Court's ruling on Trump's tariffs, the spokesperson for the Ministry of Commerce of China responded on the 23rd, stating that China is conducting a comprehensive assessment of the relevant content and impact.
The spokesperson pointed out that China has always opposed various forms of unilateral tariff increases and repeatedly emphasized that there are no winners in a trade war, and protectionism has no way out. Unilateral measures such as reciprocal tariffs and fentanyl tariffs by the U.S. violate international trade rules and U.S. domestic law, and do not serve the interests of all parties. Facts have repeatedly shown that cooperation between China and the U.S. benefits both, while confrontation harms both. China urges the U.S. to cancel the unilateral tariff measures imposed on trade partners. We have also noticed that the U.S. is preparing to take trade investigations and other alternative measures to maintain tariffs on trade partners, and China will closely monitor this and firmly safeguard its own interests.
This article is an exclusive article of Observer Net. Reproduction without permission is prohibited.
Original: toutiao.com/article/7610252326985351686/
Statement: The article represents the views of the author."