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China urges US to drop unilateral tariffs after Supreme Court ruling

Chinaโ€™s commerce ministry says it is assessing the Supreme Court tariff ruling and urges the US to lift unilateral tariffs, arguing measures like reciprocal and fentanyl tariffs violate trade rules and US law. The statement lands ahead of an early-April Trumpโ€“Xi meeting window.Summary:Chinaโ€™s commerce ministry says it is conducting a โ€œfull assessmentโ€ of the Supreme Court ruling on Trump-era tariffs Beijing urges the US to lift unilateral tariffs on trading partners Ministry says measures such as reciprocal tariffs and fentanyl tariffs violate international trade rules and US domestic law Comments land as Trump pivots to a temporary across-the-board tariff after the ruling, seeking alternative legal pathways The backdrop includes an upcoming Trumpโ€“Xi meeting window (March 31 – April 2 are the current dates for this ) that could raise the stakes for tariff messaging and leverage Chinaโ€™s Commerce Ministry said it is making a โ€œfull assessmentโ€ of the implications of a recent US Supreme Court decision that struck down much of President Donald Trumpโ€™s sweeping tariff regime, while urging Washington to remove what it called unilateral tariff measures on its trading partners. In its statement, the ministry argued that US unilateral actions, including reciprocal-style tariffs and โ€œfentanylโ€ tariffs, violate international trade rules as well as US domestic law, and are not in the interests of any party. It said China would โ€œfirmly defendโ€ its interests as it evaluates how the courtโ€™s ruling and the White Houseโ€™s response may affect trade ties. The comments come as the US administration moves to rebuild tariff leverage using alternative authorities after the Supreme Court curtailed the presidentโ€™s ability to impose broad tariffs under emergency powers. Trump ordered a temporary global tariff and launched new trade probes under other legal frameworks, underscoring that the ruling may limit one tool but not end tariff uncertainty for partners. For Beijing, the message is twofold: first, to frame the US move as legally and procedurally flawed; and second, to push for a rollback of unilateral measures while signalling readiness to retaliate or defend core interests if pressure persists. The ministryโ€™s language also sets a marker ahead of a key political window, with Trump expected to travel to China from March 31 to April 2 for high-level talks, a timeframe that effectively makes early April a deadline for both sides to clarify negotiating positions. Net, China is projecting firmness while keeping the door open to engagement, but its emphasis on legality and mutual interest suggests Beijing will seek concessions on tariffs and predictability on trade rules as central asks in any near-term diplomacy.
This article was written by Eamonn Sheridan at investinglive.com.

๐Ÿ”— Source

๐Ÿ’ก DMK Insight

China’s push against US tariffs could shake up trade sentiment and market dynamics. With the Trump-Xi meeting on the horizon, traders should keep an eye on how this rhetoric influences market volatility. If the US responds positively, we might see a short-term rally in equities and commodities, especially those linked to trade like copper and oil. Conversely, a lack of progress could lead to renewed fears of a trade war, impacting risk assets negatively. Watch for key levels in the S&P 500 and commodities; a break below recent support could signal further downside. Also, monitor the USD/CNY exchange rate for signs of market sentiment shifting towards risk-off behavior. The real story here is how these developments could affect not just US-China relations but also global supply chains and inflation expectations.

๐Ÿ“ฎ Takeaway

Watch the S&P 500 for support levels and monitor the USD/CNY rate as trade tensions evolve ahead of the Trump-Xi meeting.

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