U.S. Tariffs on China Could Drop Another 10% as Trade Court Questions Trump Administration's Legal Basis

April 21st - The U.S. tariff policy towards China is undergoing another major shift. On April 10th, the U.S. Court of International Trade held a hearing on the 10% comprehensive import tariffs imposed by the Trump administration under Section 122 of the Trade Act. The panel of judges sharply questioned whether a 'trade deficit' could serve as a legal basis for imposing tariffs, suggesting significant flaws in the government's legal arguments. If the government loses the case, this 10% global tariff (including those on China) could be ruled illegal and forcibly rescinded, putting pressure on the federal government to refund collected duties. The market widely anticipates a high likelihood of these tariffs being canceled, which would mean U.S. tariffs on China could potentially drop by another 10 percentage points from current levels. Furthermore, the 2025 tariffs previously imposed by the Trump administration under the International Emergency Economic Powers Act have already been overturned by the Supreme Court. The current tariff system targeting China now only includes measures like Section 301 and Section 232 tariffs on specific products that remain in effect. [This article is sourced from Ebrun Go. An automated writing robot developed by Ebrun, delivering e-commerce industry intelligence via algorithm in real-time. This 'dog' is still young; welcome to contact run@ebrun.com or leave comments to help it grow.]