Ruling against Trump’s tariffs creates new uncertainty in US trade relations with China
By Associated Press, February 22, 2026The 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, February 20, 2026, a 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 stabilise 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 Centre, a Washington-based think tank.
Furious about the defeat, Trump said first he was imposing a temporary 10 per cent global tariff before raising it to 15 per cent 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.”
The White House has confirmed that Trump will travel to China on March 31 through April 2 to meet President Xi Jinping.
China is looking beyond tariffs
Xi is unlikely to “flaunt or brandish” the Supreme Court ruling forcefully when meeting Trump, likely choosing instead to try to strengthen his rapport with the U.S. president, said Ali Wyne, a senior research and advocacy adviser focused on U.S. policy toward China at the International Crisis Group.
The more that Xi can do that, “the more likely it is that the fragile trade truce between the United States and China will take hold in earnest and that Trump will be amenable to security concessions that give China greater freedom of maneuver in Asia,” Wyne said.
Asked for comment on the implications of the court ruling, Chinese Embassy spokesperson Liu Pengyu said only that tariff and trade wars serve neither country’s interest. He called for Beijing and Washington to work together to “provide greater certainty and stability for China-U.S. economic and trade cooperation and the global economy.”
The court decision also creates new uncertainty for other U.S. trading partners, in Asia and elsewhere, especially those that have reached trade deals to calm the initial turmoil from Trump’s tariffs.
“I would expect most Asian partners to proceed cautiously, with existing agreements largely holding as both sides work through the implications in the coming weeks,” said Dan Kritenbrink, a partner at The Asia Group who served as assistant secretary of state for East Asian and Pacific affairs in the Biden administration.
He said he would be watching the impact on Japan ahead of Prime Minister Sanae Takaichi’s planned visit to Washington in March. Japan, a staunch U.S. ally, has seen its relations with Beijing deteriorate in recent months.