China MOFCOM: China may adjust countermeasures against US on tariffs

China MOFCOM: China may adjust countermeasures against US on tariffs

China MOFCOM: China May Adjust Countermeasures Against U.S. Tariffs

The U.S. Supreme Court's recent ruling invalidating President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs has prompted China's Ministry of Commerce (MOFCOM) to reassess its trade response. The decision, delivered on February 20, 2026, struck down the 10% "fentanyl" and reciprocal tariffs on Chinese goods, which had been central to the U.S.-China trade truce negotiated in October 2025. MOFCOM stated it is "conducting a full evaluation of the relevant content and impact" of the ruling and "closely monitoring" U.S. plans to implement a 15% global tariff under Section 122 of the Trade Act of 1974.

The Supreme Court's 6-3 decision clarified that Congress, not the executive branch, holds authority to impose import tariffs under the U.S. Constitution. This has forced Trump to pivot to alternative legal frameworks, including Section 122, which permits temporary tariffs of up to 15% for 150 days to address balance-of-payments deficits. China's retaliatory 10% tariff on U.S. imports, imposed in response to reciprocal duties, remains in effect.

MOFCOM emphasized that China will "firmly safeguard its interests" amid U.S. tariff adjustments. The ministry noted that the October 2025 trade agreement—under which China lifted retaliatory duties on U.S. agricultural goods and eased rare earth export controls—was predicated on the IEEPA tariffs. With those duties now void, China may revisit the terms of the truce if the U.S. imposes further measures.

The immediate impact on Chinese imports includes a reduction in the trade-weighted average tariff rate from 36.8% to 29.7% under the new U.S. global tariff regime. However, existing Section 301 tariffs (7.5–100%) and Section 232 tariffs (25–50%) on Chinese goods remain unaffected. Trump has signaled intent to explore additional statutes, such as Section 232 and Section 301, to justify long-term duties, though these require lengthy investigations.

For businesses, the ruling introduces legal constraints on U.S. tariff policies, potentially stabilizing trade relations but complicating short-term planning. China's response will likely hinge on whether the U.S. leverages these alternative statutes to target specific sectors. MOFCOM's cautious stance suggests a preference for diplomatic resolution, particularly ahead of Trump's planned April visit to Beijing.

, February 23, 2026.