U.S. Supreme Court ruling strips President Trump of emergency tariff powers, handing China a significant bargaining advantage ahead of the March 31 summit. The court invalidated levies that had reached as high as 145% on some goods, leaving only the 15% baseline tariff applied to allies, which expires in 150 days.

This forces Trump into a weaker position, making it harder to extract massive purchase commitments. China now demands expanded access to advanced semiconductors, leveraging its H200 chip approvals and potential rare earth metal controls as counter-levers against U.S. export restrictions. Chinese exporters rush shipments to avoid new barriers before the 150-day window closes, while analysts warn of a complex, two-way negotiation replacing one-sided demands. The ruling clears a major diplomatic sticking point, shifting focus to defining a new investment framework as Treasury officials prepare to meet Chinese counterparts.