"Fighting is Harmful" China Assesses Supreme Court Tariff Blow to Trump

The U.S. Supreme Court’s decision to invalidate key tariffs imposed under emergency powers has triggered a rapid policy pivot in Washington and a measured but pointed response from Beijing, injecting fresh volatility into global trade relations.

Court Curbs Emergency Tariff Authority

On February 20, the Supreme Court ruled that President Donald Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs.

The Court said tariff power belongs to Congress, and the IEEPA cannot be stretched to justify sweeping trade duties.

The ruling struck down many tariffs central to Trump’s global trade war, including measures targeting China and several Asian export economies.

Beijing Signals Strategic Restraint

China’s Commerce Ministry said Monday it is conducting a “full assessment” of the ruling. “U.S. unilateral tariffs violate international trade rules and U.S. domestic law, and are not in the interests of any party,” the ministry said.

“Cooperation between China and the United States is beneficial to both sides, but fighting is harmful.” The ministry added that China would “continue to pay close attention” and “firmly safeguard its interests.”

Trump’s proposed tariffs rely on Section 122, a provision that permits duties of up to 15% but limits their duration to 150 days without congressional approval. No president has previously invoked Section 122, and legal experts expect further challenges.

Policy Volatility, Market Shock

Within hours of the supreme court ruling, Trump signaled a policy shift, stating that “all national security tariffs under Section 232 and all existing Section 301 tariffs remain fully in place and in full force and effect.”

He added that he would sign an order imposing “a 10% global tariff under Section 122, over and above our normal tariffs already being charged.”

The shift underscored the administration’s urgency to preserve leverage after the Court’s constraints on IEEPA-based tariffs.

Meanwhile China’s state-run Global Times quoted Gao Lingyun of the Chinese Academy of Social Sciences describing recent U.S. tariff decisions as “highly arbitrary” and a “political weapon,” adding that “Tariff policy should be based on rigorous assessment, not political preference.”

Allies And Partners Respond

South Korea said it would continue consultations with Washington to maintain a “balance of interests.” Industry Minister Kim Jung-kwan cited concern across sectors including cars, batteries, and semiconductors.

India delayed a planned trade delegation to Washington amid uncertainty. Under a provisional framework, U.S. tariffs on Indian goods were set to fall to 18%, while India committed to purchasing $500 billion in U.S. goods over five years.

In Europe, European Central Bank President Christine Lagarde warned on CBS’ Face the Nation that renewed tariff disruptions risk compounding business uncertainty. “To sort of shake it up again is going to bring about disruptions,” she said.

Trade and tariff policy are expected to dominate the agenda ahead of Trump’s anticipated visit to China in late March and early April, where he is scheduled to meet President Xi Jinping.