Supreme Court Ruling on Tariffs Won’t Change US–China Trade Relations, Analysts

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Supreme Court Justice Brett Kavanaugh, who dissented, and analysts said Trump can use other legal options to continue his global tariff policies.

After the U.S. Supreme Court ruled on Feb. 20 that President Donald Trump’s global tariffs implemented under the International Emergency Economic Powers Act (IEEPA) were unlawful, analysts told The Epoch Times that it won’t affect U.S. trade relations with China, as there are other legal options for the Trump administration to impose levies.

By a vote of 6–3, the court ruled that IEEPA does not authorize the president to impose tariffs, including retaliatory tariffs and fentanyl-related tariffs targeting China, Canada, and Mexico.

In his dissent, Justice Brett Kavanaugh noted that “the decision might not substantially constrain a President’s ability to order tariffs going forward.”

“That is because numerous other federal statutes authorize the President to impose tariffs and might justify most (if not all) of the tariffs at issue in this case. … Those statutes include, for example, the Trade Expansion Act of 1962 (Section 232); the Trade Act of 1974 (Sections 122, 201, and 301); and the Tariff Act of 1930 (Section 338),” he wrote.

Trump raised global tariffs to 10 percent, effective on Feb. 24, after the Feb. 20 ruling under a separate trade law, Section 122. The president increased it to 15 percent the next day, effective for 150 days.

Impact on Trade With China

The United States and China reached a one-year trade truce in 2025 to de-escalate trade tensions, in which the United States reduced tariffs on goods related to fentanyl issues from 20 percent to 10 percent while China reduced tariffs on U.S. agricultural products and pledged to increase purchases of U.S. soybeans and energy.

This month, Chinese Communist Party (CCP) leader Xi Jinping promised to purchase more American soybeans and agricultural products in a phone call with Trump.

Frank Xie, ​​a professor at the Aiken School of Business at the University of South Carolina, told The Epoch Times that the Supreme Court’s ruling did not overturn all of Trump’s tariffs, but rather prevented Trump from invoking IEEPA to impose tariffs.

“There are other legal tools that allow Trump to continue raising tariffs, so the tariff war will continue, along with tariff penalties against China. Negotiations with China will also continue, and China will likely continue to purchase U.S. soybeans,” he said.

“Actually, the ruling doesn’t change much for either the CCP or the U.S. government. Judging from Trump adding additional … global tariffs immediately afterwards, the tariff war is accelerating,” he said.

By Alex Wu

Read Full Article on TheEpochTimes.com

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