President Trump’s most sweeping tariffs face a landmark test of presidential powers, as the US Supreme Court is set to rule on the implications and legality of Trump’s global duties on trade partners.
The high court’s first two opportunities to issue a verdict this year — the latest on Wednesday — have come and gone without a decision.
Whatever the ruling, the case is being closely watched, as companies like Costco (COST) bring lawsuits against the US government in the hope of securing a refund on import duties if the court rejects Trump’s authority to impose tariffs.
The court heard arguments in early November. Both conservative- and liberal-leaning justices asked skeptical questions of the method by which the president imposed his most sweeping duties. Trump imposed his tariffs by invoking a 1977 law meant for national emergencies.
The Trump administration also made appeals to the court last year, and in recent weeks, Trump has frequently expressed concern over the ruling, saying losing the ability to tariff other countries would be a “terrible blow” to the US. On Monday, he went even further.
“If the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!” he wrote on social media.
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Canadian Prime Minister Mark Carney and China’s President Xi Jinping have reached a deal to cut tariffs on Chinese electric vehicles, in return for lower duties on Canadian farm products.
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The US and Taiwan reached a trade deal Thursday, the countries announced. The US said the deal would “drive a massive reshoring of America’s semiconductor sector.”
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China’s trade surplus hit a record $1.2 trillion in 2025, despite Trump’s tariffs. Beijing has to blamed the US for growing global trade imbalances.
Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered
LIVE 35 updates
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Canada, breaking with US, agrees to cut tariff on Chinese EVs in return for lower tariffs
Canadian Prime Minister Mark Carney announced on Friday that Canada and China have reached a deal for Beijing to cut tariffs on its canola by March 1. This latest move between the two countries is a sign that the trade rift, which disrupted crop flows, is starting to thaw.
In return, Canada agreed to cut tariffs on Chinese electric vehicles. Canada will allow up to 49,000 Chinese EVs at a tariff of 6.1%, Carney said after talks with Chinese leader Xi Jinping.
This is the first visit from a Canadian prime minister since 2017, as Canada seeks to build its strategic alliances with the country’s second-largest trading partner after the US.
It is also a sign that China may start to rebuild some of its strategic allies, while Canada may be breaking from the US.
Bloomberg News reports:
