Court ruling seen affecting US IEEPA tariffs on China, mainland media report

The 20 percent levies on Chinese goods imposed by the United States should cease following the US Supreme Court’s ruling, Yuyuan Tantian, a mainland account affiliated with China Central Television, said.

The ruling found the tariffs introduced under the International Emergency Economic Powers Act lacked clear legal authorization, it said. The affected duties mainly include the 10 percent fentanyl-related tariffs and the 10 percent portion of the reciprocal tariffs currently in force, the commentary added, saying the decision makes it difficult for Washington to continue using IEEPA to impose tariffs.

The US has turned to Section 122 of the Trade Act of 1974 to impose temporary tariffs of up to 150 days, announcing a 10 percent rate later raised to 15 percent, it said. However, the legal threshold for invoking that provision concerns overall balance of payments conditions rather than goods trade deficits alone, and the new tariffs could face legal challenges.

Cui Fan, described as a senior political and economic journalist familiar with international trade negotiations, was quoted as saying that China may assess developments if the US adjusts its measures, but would study possible responses if new tariffs are imposed under other legal authorities.

Cynthia ZHONG