Ruling against Trump's tariffs creates new uncertainty in US trade relations with China

The Supreme Court decision striking down President Donald Trump’s sweeping tariffs has added a wrinkle to already complicated U.S.-China relations

WASHINGTON -- The Supreme Court decision striking down President Donald Trump’s sweeping tariffs has added a wrinkle to already complicated U.S.-China relations, with both countries navigating shifting ground to avoid an all-out trade war that would disrupt the global economy while still jostling for a position of strength in negotiations.

Friday's court ruling would seem to strengthen China’s hand, but analysts predict that Beijing will be cautious in exploiting the advantage, knowing that Trump has other ways of levying taxes. Both sides also want to maintain a fragile trade truce and stabilize ties ahead of Trump’s highly anticipated trip to Beijing.

“It will give China a moral boost in their negotiations with Trump's team ahead of the summit, but they are prepared for the scenario that nothing actually changes in reality," said Sun Yun, director of the China program at the Stimson Center, a Washington-based think tank.

Furious about the defeat, Trump said first he was imposing a temporary 10% global tariff before raising it to 15% as well as pursuing alternative paths for import duties. He made the case for tariffs by pointing to China, which poses the biggest challenge to U.S. economic, technological and military dominance.

“China had hundreds of billions of dollars in surpluses with the United States. They rebuilt China. They rebuilt the army. We built China’s army by allowing that to happen,” Trump told reporters Friday. “I have a great relationship with President Xi, but he respects our country now.”