US tariff ruling points to steadier US–China ties ahead of April summit: analysts
South China Morning Post
by Khushboo Razdan,Xinmei ShenFebruary 23, 2026
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As US President Donald Trump prepares for a critical summit with Chinese leader Xi Jinping in Beijing from March 31 to April 2, recent developments in US-China trade relations suggest a shift toward cautious stability rather than escalating tensions. A significant legal setback for the US—its Supreme Court ruling striking down broad tariffs—has bolstered China’s position in negotiations. This reversal has effectively lowered trade barriers, giving China greater leverage, particularly over critical minerals like rare earths, which are essential for many high-tech industries.
The recent policy U-turn reflects a broader reevaluation of US trade strategies under Trump. Previously, the administration had pursued aggressive measures to reduce imports and protect domestic industries, leading to heightened tensions with China. However, the Supreme Court’s decision has curtailed some of these efforts, signaling a potential pivot in approach ahead of the Beijing summit. Analysts believe this shift may pave the way for more pragmatic discussions, as both sides seek to avoid further escalation and focus on areas of mutual interest.
China’s strengthened negotiating position is rooted in its ability to influence global supply chains through rare earth minerals. These materials are crucial for advanced technologies, defense systems, and renewable energy sectors, giving China significant economic and geopolitical leverage. This advantage, combined with the reduced impact of US tariffs, has emboldened Beijing to pursue a more assertive stance in trade negotiations.
The outcome of these discussions will have far-reaching implications for global trade dynamics. If successful, they could ease tensions and foster cooperation on key issues like intellectual property rights and market access. However, analysts caution that both sides must demonstrate flexibility to achieve meaningful progress. The summit between Trump and Xi Jinping is seen as a pivotal moment in determining the trajectory of US-China relations, with potential consequences for international trade, global markets, and geopolitical stability.
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Originally published on South China Morning Post on 2/23/2026