A court decision overturning tariffs imposed by Donald Trump strengthens Xi Jinping’s position ahead of their talks in Beijing on March 31, writes Bloomberg.
Trump, who has not visited China since 2017, has lost the ability to raise duties swiftly on almost any pretext—an instrument that previously allowed him to ratchet up pressure on Beijing at short notice.
“Removing the threat of tariffs, which rose to as much as 145% last year, will make it harder for Trump to pressure Xi Jinping into boosting purchases of soybeans, Boeing Co. aircraft and energy supplies. It also deprives him of a key weapon for retaliation should Chinese negotiators advance new demands in exchange for allowing a steady flow of rare earths vital to US manufacturing,” the article says.
The US Customs and Border Protection agency, in turn, said it would suspend the collection of tariffs imposed under the International Emergency Economic Powers Act on February 24 at 12:01 a.m. Eastern Time, Reuters reports.
Tariffs imposed on other legal grounds will remain in force.
At the same time, Trump’s new global tariffs of 15% will take effect, introduced to replace those that were struck down.