China Demands US Withdraw New 15% Tariffs: Complete Guide to 2026 Trade War

China Demands US Withdraw New 15% Tariffs After Supreme Court Ruling

China has formally demanded that the United States withdraw newly announced 15% global import tariffs, marking a significant escalation in the ongoing trade tensions between the world's two largest economies. The demand comes just days after former President Donald Trump announced the sweeping tariffs in response to a Supreme Court ruling that invalidated much of his previous trade policy framework. The Chinese Ministry of Commerce stated on Monday that it is conducting a 'comprehensive analysis' of the Supreme Court decision's implications and urged Washington to 'scrap unilateral import tariffs on its trading partners.'

What Are the New US Tariffs?

The new 15% global import tariffs, set to take effect on Tuesday, represent Trump's response to a February 2026 Supreme Court ruling that struck down many of his earlier trade measures. The tariffs are based on Section 122 of the Trade Act of 1974, which allows the president to impose a base tariff of up to 15% on all countries for a maximum of 150 days before requiring congressional approval for extension. This legal framework differs significantly from Trump's previous approach, which relied on emergency powers that the Supreme Court deemed unconstitutional.

Key Details of the 15% Tariff Policy

• Rate: 15% on all imported goods globally
• Legal Basis: Section 122 of the Trade Act of 1974
• Duration: Maximum 150 days without congressional approval
• Implementation Date: Tuesday, February 24, 2026
• Exemptions: Existing trade deals with approximately 20 countries including UK, EU, Japan, and Switzerland

China's Official Response and Analysis

The Chinese Ministry of Commerce issued a strong statement on Monday, declaring that 'there are no winners in a trade war and protectionism leads nowhere.' The ministry emphasized that it is conducting a thorough assessment of the Supreme Court ruling's implications for bilateral trade relations. 'China urges the United States to withdraw unilateral import tariffs on its trading partners,' the statement read, highlighting Beijing's firm opposition to what it views as protectionist measures that violate international trade rules.

This development comes at a critical juncture in US-China relations, with Trump scheduled to visit China in late March or early April to meet with President Xi Jinping. Trade policy is expected to dominate their discussions, particularly given the recent legal developments in Washington. The Chinese response follows a pattern seen during previous US-China trade negotiations, where Beijing combines firm opposition to unilateral measures with calls for dialogue and multilateral cooperation.

Supreme Court Ruling and Legal Context

The Supreme Court's 6-3 ruling on Friday represented a significant judicial check on executive trade powers. The court determined that Trump had improperly used the 1977 International Emergency Economic Powers Act to impose broad global tariffs, stating that tariff authority during peacetime properly belongs to Congress. This ruling invalidated much of Trump's previous tariff scheme, including base rates and reciprocal tariffs on countries like Mexico, Canada, Brazil, and India.

In response, Trump pivoted to Section 122 of the Trade Act of 1974, which provides different legal authority for temporary tariffs. This section allows the president to impose tariffs of up to 15% for up to 150 days in response to 'large and serious' balance-of-payments deficits, requiring only presidential determination that such a deficit exists. However, any measures imposed expire after 150 days unless Congress votes to extend them, and actions under Section 122 must be applied uniformly and cannot target individual countries.

Global Economic Impact and Reactions

The announcement has created significant uncertainty in global markets, with economists warning of higher costs for importers and consumers worldwide. The European Union has already called on the US to honor existing trade deals, while other major economies including South Korea and India are reacting cautiously to the developments. Market reactions have been mixed, with US futures and Bitcoin falling while Asian markets show varied responses.

The timing is particularly sensitive as global supply chains continue to recover from previous trade disruptions. Many businesses had adjusted to the previous tariff regime and now face another round of uncertainty. The global economic outlook for 2026 may need revision if these tariffs remain in place and trigger retaliatory measures from trading partners.

What This Means for International Trade

The renewed trade tensions come at a time when the global economy faces multiple challenges, including inflationary pressures and geopolitical uncertainties. The 15% tariff represents one of the broadest trade measures in recent history, affecting virtually all US trading partners simultaneously. However, the temporary nature of the tariffs under Section 122 means they could expire within five months without congressional support.

China's position reflects its broader strategy of positioning itself as a proponent of multilateralism and economic cooperation. Beijing has recently eliminated tariffs for 43 least-developed countries and strengthened ties with ASEAN, the EU, and Global South nations, contrasting its approach with what it characterizes as US unilateralism. This diplomatic positioning could gain traction among other nations concerned about the stability of the global trading system.

FAQ: China-US Tariff Dispute 2026

What triggered the new US tariffs?

The tariffs were announced by former President Donald Trump in response to a Supreme Court ruling that invalidated much of his previous trade policy framework. The court ruled he improperly used emergency powers for tariffs.

How long will the 15% tariffs last?

Under Section 122 of the Trade Act of 1974, the tariffs can last a maximum of 150 days without congressional approval. After that period, Congress must vote to extend them.

What is China's main objection?

China argues that unilateral tariffs violate international trade rules and domestic US law, warning that prolonged trade friction damages both economies.

Which countries are exempt from the tariffs?

Approximately 20 countries with existing trade deals including the UK, EU, Japan, and Switzerland will be exempt from the new tariffs.

What happens next in the trade dispute?

All eyes are on Trump's scheduled visit to China in late March/early April, where trade policy will likely dominate discussions with President Xi Jinping.

Sources

Reuters: China's assessment of Supreme Court ruling
The Guardian: Trump tariff policy after court ruling
Economic Research: 15% global tariff analysis
Business Today: China's comprehensive assessment