Core Points - The U.S. government has been ruled illegal in its use of the International Emergency Economic Powers Act to impose tariffs, marking a significant setback for the aggressive trade policies of the Trump administration [1][3] - The ruling raises questions about the validity of previous trade agreements made with the U.S. [1][5] - The ruling was upheld by the Federal Circuit Court, which stated that the power to impose tariffs is a core authority of Congress, not the President [3][5] Summary by Sections Legal Ruling - The Federal Circuit Court maintained the previous ruling that the Trump administration's tariffs imposed under the International Emergency Economic Powers Act were illegal, with a vote of 7 to 4 [3] - The court emphasized that while the Act allows the President to take certain economic measures in emergencies, it does not grant the authority to impose tariffs through executive orders [3] Economic Impact - The ruling could have direct implications for the U.S. economy and may trigger reactions in global markets, as trade partners reassess the legal standing of U.S. tariffs [5] - The Trump administration collected approximately $107 billion in tariffs from February to July, a significant portion of which was based on the now-ruled illegal measures [4] Ongoing Trade Negotiations - The U.S. is still engaged in trade negotiations with multiple countries, including the UK, Vietnam, and the EU, but the legal uncertainty surrounding tariffs may complicate these discussions [6][7] - Japan's trade representative canceled a trip to the U.S. due to dissatisfaction with proposed U.S. tariffs, indicating potential friction in ongoing negotiations [7]

Trade Negotiation Outlook - Trade negotiations between China and the US in Stockholm are expected to result in a three-month extension of the tariff truce [1] - Both countries are expected to commit to refrain from imposing additional tariffs or escalating the trade war [1] Key Issues - The US will likely express concerns regarding China's excess industrial capacity [1] - China is expected to pressure the US regarding fentanyl tariffs [1]

Core Viewpoint - The U.S. has not lifted the so-called "fentanyl tariffs" imposed on Chinese imports, which is viewed as a bullying tactic that undermines trust and dialogue in drug control efforts between the two countries [1] Group 1: U.S.-China Relations - The Chinese National Narcotics Control Commission criticized the U.S. for its actions, stating that it severely damages the foundation for cooperation in drug control [1] - China is recognized as one of the countries with the strictest and most comprehensive drug control policies in the world [1] Group 2: International Cooperation - China actively engages in international cooperation on drug control and has offered humanitarian assistance to help the U.S. address its fentanyl crisis, with visible results [1] - The Chinese government urges the U.S. to reflect seriously and adopt a responsible approach to reduce drug demand at the source, rather than shifting blame [1]

Core Viewpoint - The U.S. International Trade Court (CIT) ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President unlimited authority to impose tariffs, leading to the annulment of related tariff measures [1][7]. Group 1: Court Ruling Details - The CIT combined two cases, one initiated by the Liberty Justice Center on behalf of five small businesses challenging the "reciprocal tariffs" and another by the Oregon Attorney General representing twelve states against global tariffs, retaliatory tariffs, and fentanyl tariffs [3]. - The court confirmed that the IEEPA does not explicitly authorize the President to impose unlimited tariffs, which have significant economic and political implications [4][5]. - The ruling stated that the tariffs imposed by the Trump administration exceeded the authority granted by the IEEPA and violated constitutional principles [6][7]. Group 2: Implications for Trade Policy - The ruling could represent a significant policy shift, particularly benefiting small and medium-sized enterprises that struggle to absorb the costs of tariffs [6]. - The decision emphasizes that trade decisions should not be made unilaterally by the President without Congressional authorization, reaffirming the importance of legislative oversight [4][5]. - The CIT's ruling applies nationwide, affecting all importers, but does not address tariffs authorized under other laws, such as those related to steel and aluminum [7].

Group 1 - The recent ruling by the U.S. International Trade Court has blocked the "reciprocal tariffs" imposed by the Trump administration, indicating a significant check on the government's tariff policies [1][3]. - The initial round of tariffs against China, initiated in 2018, has established a legal framework that is unlikely to change in the short term, with a focus on the newly introduced tariffs this year [3][5]. - The "Fentanyl Tariff," which imposes a 20% tariff on Chinese goods, remains unaffected by the court's ruling, while the 10% "reciprocal tariff" is currently frozen but not entirely canceled [5][8]. Group 2 - The Trump administration has initiated an appeal against the court's decision, which may eventually reach the Supreme Court, where a conservative majority could potentially overturn the lower court's ruling [5][6]. - Even if the "reciprocal tariff" is deemed illegal, the Trump administration may find alternative justifications to impose tariffs, as demonstrated by the strategic use of the "Fentanyl Tariff" [8]. - The ongoing trade tensions necessitate a robust response strategy, including utilizing WTO dispute resolution mechanisms and enhancing domestic supply-side reforms to stabilize the economy [10].

Group 1 - The core point of the article is the recent adjustment of tariffs between China and the United States, where both countries have agreed to cancel 91% of additional tariffs and suspend 24% of reciprocal tariffs, marking a temporary easing of trade tensions [1][3] - Following the tariff adjustments, there has been a surge in demand from American buyers for Chinese goods, with many U.S. companies pre-loading containers in anticipation of the changes [3][5] - The logistics company ITS Logistics predicts a 20% increase in shipping costs from China to the U.S. West Coast in the coming weeks, indicating a critical period for inventory accumulation for shippers and carriers [3][5] Group 2 - Despite the short-term benefits, U.S. businesses, especially small enterprises, express concerns about the potential policy shifts after the 90-day period, as they still face a 30% tariff burden [5][6] - The ongoing fentanyl tariff issue remains contentious, with the U.S. imposing additional tariffs on China under the pretext of fentanyl control, which China disputes [6][8] - The future trajectory of U.S.-China trade relations hinges on negotiations regarding the suspended tariffs and the fentanyl tariffs, emphasizing the need for constructive dialogue to resolve underlying tensions [8][9]

Core Points - The Chinese Foreign Ministry criticized the U.S. for imposing a "fentanyl tariff," claiming it undermines dialogue and cooperation in drug control between the two countries and harms China's interests [1] - A CGTN poll indicated that 91.8% of respondents view the U.S. action as political manipulation and tariff bullying, aimed at covering up its own failures in drug control [1] - The poll revealed that 91% of respondents believe drug abuse is a major threat to American lives, and 94.8% see drug proliferation as a chronic issue in U.S. society [1] Summary by Sections U.S. Drug Problem - Fentanyl is identified as a U.S. issue rather than a Chinese one, with the responsibility lying within the U.S. itself [1] - The CDC reports that among approximately 280 million Americans aged 12 and older, 1 in 12 is involved in drug use, with around 60% of global drug production entering the U.S. [1] Public Sentiment - Concerns about the rising trend of drug use among American youth are prevalent, with respondents expressing disbelief that the country with the highest drug prevalence is also the largest economy [1] - 92.8% of respondents believe the current situation reflects a significant failure of the U.S. government in regulating drug abuse [1] Government Response - The U.S. government has been criticized for its lack of action in controlling prescription drugs and educating the public about drug dangers, while also being accused of promoting drug legalization for economic interests [1] - 90.8% of respondents think the U.S. is attempting to shift the blame for its drug abuse issues onto other countries, which undermines international drug control cooperation [1]

Group 1 - The core viewpoint of the article emphasizes China's stance on the U.S. imposing a 20% special tariff on Chinese exports under the pretext of fentanyl issues, asserting that fentanyl is primarily a U.S. problem and not a Chinese one [1] - The Chinese government expresses that the U.S. has ignored China's goodwill and that the imposition of tariffs severely impacts the dialogue and cooperation between the two countries in drug control [1] - The spokesperson urges the U.S. to engage in dialogue with China in a manner that is equal, respectful, and mutually beneficial, rather than resorting to blame and smear tactics [1]

Group 1: Trade Tariff Changes - The overall tariff level imposed by the U.S. on China will decrease from 145% to approximately 30% within the next 90 days[1] - The current U.S. tariffs consist of a 20% fentanyl tariff and a 34% "reciprocal tariff," which will be reduced to 10% in the next 90 days[2] - The U.S. has committed to canceling an additional 91% retaliatory tariffs imposed since April 8, 2025, while China will also eliminate corresponding retaliatory measures[3] Group 2: Economic Impact and Future Outlook - The impact of U.S. tariffs on China's GDP is estimated to be around -1%, with a potential reduction in exports by approximately 1.3 trillion RMB based on a 30% tariff level[3] - The future trajectory of the fentanyl tariff may see gradual reductions, as discussions on this issue were highlighted in recent negotiations[4] - The "reciprocal tariff" is expected to stabilize above 10% after the initial 90-day period, reflecting ongoing trade deficit concerns[5] - The necessity for significant counter-cyclical policy adjustments in China is expected to decrease, with a positive outlook for technology stocks due to improved market risk appetite[8]