economy
February 27, 2026
Sorry, Xi, China hasn't suddenly gained a lever over Trump
Bloomberg’s Malcolm Scott is wrong. Last week’s Supreme Court decision to suspend President Donald Trump’s tariffs on nations including China did not give Beijing new leverage against the United States, nor did it undermine Trump’s efforts to uncouple the U.S. economy from the Chinese economy. Trump continues to possess several powerful tariff levers that he can use against China.
TL;DR
- The Supreme Court's decision to suspend some of President Trump's tariffs on China did not give Beijing new leverage against the U.S.
- Trump still possesses powerful tariff tools, including Section 301 of the Trade Act of 1974, to address unfair trade practices like intellectual property theft and forced technology transfers.
- Section 232 of the Trade Expansion Act of 1962 allows the president to restrict imports that threaten national security, which can be applied to protect U.S. manufacturing and technology sectors.
- China engages in economic espionage and uses state subsidies to undermine U.S. manufacturing and gain market share.
- Trump plans to visit Beijing and can utilize these tariff statutes during negotiations.
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