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China's leverage rises before high-stakes summit as Supreme Court curbs Trump tariffs
CNBC· 2026-02-23 05:52
Group 1 - The U.S. Supreme Court's ruling against President Trump's tariffs has enhanced China's negotiating position ahead of the upcoming summit with President Xi Jinping [1][2] - Analysts suggest that the ruling limits Trump's ability to impose tariffs, thereby reducing pressure on China to increase purchases of U.S. agricultural products and energy exports [3][4] - The decision may complicate Trump's efforts to secure commitments from China for significant purchases of U.S. soybeans, Boeing aircraft, and energy exports [3][4] Group 2 - China is expected to leverage the ruling to advocate for the easing of U.S. technology export controls and the removal of certain Chinese entities from U.S. sanctions lists [5] - The ruling is seen as a strategic advantage for China in negotiations, allowing it to push for the removal of remaining tariffs related to fentanyl [4][5] - The dynamics of the trade truce negotiations may shift as a result of this ruling, potentially affecting future U.S.-China trade relations [2][3]