The U.S. Supreme Court ruled on February 20 that President Donald Trump’s global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, but analysts believe this will not significantly affect U.S.-China trade relations. While the ruling, which passed by a 6-3 vote, prevents the use of IEEPA to impose tariffs, it does not eliminate other federal statutes like Section 232 of the Trade Expansion Act that could still authorize such actions. Following the ruling, Trump raised tariffs to 15 percent under a different law, indicating the continuation of the tariff conflict. This comes amidst a one-year trade truce established in 2025, which included mutual tariff reductions and recent commitments from China to increase purchases of U.S. soybeans, emphasizing that both countries aim to maintain controlled competition despite ongoing economic decoupling efforts.
US Supreme Court rules Trump tariffs unlawful, trade relations persist
