Supreme Court overturns Trump's tariffs

One month before Xi summit: Beijing suddenly holds all the aces

The legal foundation of Donald Trump's global trade war has developed cracks. In a historic ruling, the US Supreme Court declared the global tariffs imposed by the Trump administration null and void.

For Beijing, this victory comes at just the right time – only weeks before the crucial summit meeting between Trump and Xi Jinping.

What the court decided

Trump had misused the International Emergency Economic Powers Act (IEEPA) to impose blanket tariffs. The judges completely overturned the legal basis.

Trump's reaction: Within hours, he imposed 15% global tariffs under a different law (Section 122 Trade Act) – which, however, requires congressional approval after 150 days.

The winners and losers of the reordering

Country / Region	Previous status (IEEPA)	New status (Section 122)	Effect
China	~32% (weighted)	~24% (weighted)	Big winner: net reduction of approx. 7–8%.
South Korea	15% (special deal)	15% (global)	Uncertainty: legal basis for investment deals wobbles.
Japan / EU	15% (special deal)	15% (global)	Status quo at risk: fear of further legal hurdles.

Timing couldn't be better – for Beijing

Trump is traveling to Beijing at the end of March. Through the ruling, he has lost one of his most important "threats." China, on the other hand, is appearing more confident than ever before:

Record surplus: With a trade surplus of $1.2 trillion last year, Beijing has proven that it can successfully redirect exports even without the US market.
Raw materials leverage: China controls global supply chains for rare earths. Restrictions on magnets and minerals hit the US defense industry (e.g., F-35 jets) hard.
Counter-demands: It is expected that Xi will demand massive concessions on the Taiwan question and US technology export controls in exchange for agricultural purchases (soybeans).

Sources: CNN, CNBC, The Straits Times