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Supreme Court Weighs Trump’s Tariff Powers as U.S. and China Ease Some Levies

A ruling on emergency powers could remake U.S. tariff policy even with a limited U.S.–China tariff truce taking hold.

Overview

  • Justices heard oral arguments on whether the 1977 IEEPA allows broad tariffs, after lower courts found key measures unlawful, with a decision expected in months.
  • Plaintiffs include small import‑dependent firms and twelve U.S. states, while the administration warned that striking down the duties would damage the economy and national security.
  • Following XiTrump talks, China will suspend extra tariffs on soy and other farm goods and keep other increases at 10%, both sides extended a 10% mutual rate for a year, and the U.S. halved “fentanyl” tariffs to 10%.
  • Confusion persists over rare‑earths and other export controls, as Beijing has not confirmed broader relaxations, and market experts warn the uncertainty could spur hoarding.
  • The July EUU.S. deal set a 15% base tariff on most EU goods and cut U.S. car duties on European vehicles to 15%, yet German exporters report falling U.S. sales and machinery makers face additional steel and aluminum content charges.