China Prepares Response to Trump’s New Global Tariff Policy

On Friday, February 20, 2026, the U.S. Supreme Court ruled 6-3 that the President cannot use the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs, effectively striking down the 20% "Liberation Day" duties previously levied on Chinese imports. In an immediate countermove, President Trump invoked Section 122 of the Trade Act of 1974, initially announcing a 10% global tariff before raising it to 15% on Saturday to address what the White House calls "fundamental international payments problems."

The Chinese Ministry of Commerce (MOFCOM) stated on Tuesday, February 24, that it is conducting a "comprehensive assessment" of the legal shifts in Washington. While expressing firm opposition to unilateral tariffs, Beijing has adopted a measured stance, signaling that it will decide on countermeasures "in due course." Observers note that the Supreme Court's ruling significantly reduced the immediate tax burden on Chinese exporters, but the new 15% baseline under Section 122—which went into effect on February 24—remains a major hurdle for global trade.

In anticipation of further escalation, China has already begun implementing targeted retaliatory measures. These include:

• 15% tariffs on U.S.-origin agricultural products such as cotton, corn, and wheat, effective March 2026.

• New export controls on critical minerals, including tungsten and molybdenum, essential for high-tech manufacturing.

• Suspension of U.S.-origin log imports and increased duties on supercooled natural gas and coal.

Despite the friction, diplomatic channels remain open. The White House confirmed that President Trump is scheduled for a historic state visit to Beijing from March 31 to April 2, 2026. This summit with President Xi Jinping is seen as a critical opportunity to negotiate a new "trade truce" and address core issues like the fentanyl crisis and Taiwan, as both nations grapple with the economic fallout of the ongoing trade war.