Beijing on Monday warned there are "no winners in a trade war" after the U.S. Supreme Court ruled against a raft of tariffs imposed by President Donald Trump last year, dealing a blow to what has become a cornerstone of his foreign policy.
Why It Matters
In a rare move, two Trump-appointed justices joined the 6-3 decision to strike down the sweeping tariffs imposed by the president under the International Emergency Economic Powers Act (IEEPA). Trade duties are typically the domain of Congress, the only branch with constitutional authorization to levy taxes.
The 1979 act grants the president limited authority to address major foreign threats through economic measures.
Trump argued that trade deficits rose to this level of threat. He also cited the flow of the deadly opioid fentanyl, leading to additional tariffs on top U.S. trade partners China, Canada, and Mexico. Beijing responded with a range of tit-for-tat measures of its own.
Newsweek reached out to the White House by email outside of regular office hours with a request for comment.
"China has consistently opposed all forms of unilateral tariff hiking measures and has repeatedly emphasized that there are no winners in a trade war and that protectionism offers no way out," a spokesperson for China's Ministry of Commerce told reporters Monday.
"The unilateral measures taken by the U.S.—including reciprocal tariffs and fentanyl related tariffs—not only violate international economic and trade rules, but also violate U.S. domestic law, and they do not serve the interests of any party."
The "facts" have shown time and again that the U.S. and China benefit from cooperation and are damaged by confrontation, the spokesperson stated. The Trump administration's plans for new temporary tariffs and trade investigations, in response to the ruling, is noted, and China will closely monitor this and "firmly safeguard" its interests, the official added.
Trump has struck a defiant tone since the Supreme Court’s decision, blasting Justices Amy Coney Barrett and Neil Gorsuch, whom he appointed during his first term, as “disloyal.” He announced a new 10 percent blanket tariff on all countries—“many of which have been ripping the U.S. off for decades”—later raising it to 15 percent pending a review of what he described as “new and legally permissible tariffs.”
What People Are Saying
Chief Justice John Roberts stated in the February 20 ruling: "The “‘lack of historical precedent” for the IEEPA tariffs, “coupled with the breadth of authority” that the president now claims, "is a ‘telling indication" that the tariffs extend beyond the president’s “legitimate reach.”
President Donald Trump wrote in a post on Truth Social Friday: "During the next short number of months, the Trump administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of making America great again—greater than ever before"
Li Haidong, professor at the China Foreign Affairs University, said of the newly announced tariffs in an interview state media outlet Global Times: The announced 15 percent tariff: "Such domestically driven tariff chaos will inevitably heighten global supply-chain uncertainty and deepen instability in the world trade order."
What Happens Next
The new tariffs will take effect Tuesday, the White House said. They are permitted for 150 days under Section 122 of the U.S. Trade Act of 1974, but will automatically expire unless extended by a congressional vote before the end of that period.
Trump has said he will travel to China at Xi’s invitation in April. The two leaders are expected to expand on efforts to build on the trade truce reached during their last face-to-face talks in Busan, South Korea, in October.
In a polarized era, the center is dismissed as bland. At Newsweek, ours is different: The Courageous Center—it's not "both sides," it's sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.
When you become a Newsweek Member, you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations. Help keep the center courageous. Join today.
Newsweek