What next for China’s export machine after top US court blocks Trump’s tariffs?
The high-stakes meeting between Trump and Xi may determine whether current reprieve gives way to a more durable trade deal, analyst says
Chinese goods had been subject to an additional 20 per cent in levies imposed by Trump in his second term: “reciprocal” duties of 10 per cent and a further 10 per cent in “fentanyl” tariffs. That was before the US Supreme Court struck down those measures on Friday.
As a temporary replacement, Trump issued an executive order on the same day, imposing a 10 per cent levy on all goods entering the United States, effective on Tuesday. He later announced on Truth Social that the rate would be increased to 15 per cent – the maximum allowed under Section 122 of the 1974 Trade Act.
The shift provides Chinese exporters with a net reduction in the near term, capped at 150 days under the obscure trade law cited. While exporters welcomed the drop in rates, some said they were still contending with a complex, multilayered tariff regime.