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Tag: China’s economy

Supreme Court Saves Trump From Tariff Addiction

Introduction to the Tariff Conundrum

The Supreme Court’s recent ruling on Trump’s tariffs has sent shockwaves through the economic and political spheres. According to the Tax Foundation, the ruling delivers relief from the IEEPA tariffs, which were estimated to shrink long-run US GDP by 0.3 percent. However, the Section 232 tariffs remain in place, and the Trump administration may pursue other avenues to impose tariffs.

Understanding the Supreme Court’s Ruling

The Supreme Court struck down President Donald Trump’s far-reaching global tariffs in a 6-3 decision, handing him a stinging loss on an issue crucial to his economic agenda. As noted by SCOTUSblog, the Court ruled that Trump’s reliance on IEEPA to impose the tariffs violated the ‘major questions’ doctrine. This doctrine states that if Congress wants to delegate the power to make decisions of vast economic or political significance, it must do so clearly.

The Economic Effects of Tariffs

According to the Wharton Budget Model, President Trump’s tariffs will impact the U.S. economy through at least three main channels. The model estimates that the tariffs will reduce investment by about 4.4 percent in 2025 and will cost US households $400 on average in 2026. Furthermore, the Economic Policy Uncertainty (EPU) Index, which captures uncertainty surrounding economic policy decisions, has increased significantly since the implementation of the tariffs.

Future Implications and Market Impact

The Supreme Court’s ruling may have saved Trump from the economic and political consequences of his unpopular tariff addiction, but if he can’t stop complaining about it and promising to find new ways to impose tariffs, the net effect could be negative. As noted by the PIIE, the next chapter will be Trump’s call, whether to try using other authorities or seek new legislation. The market impact of this decision will be significant, with potential effects on trade policies, economic growth, and consumer prices.

Practical Takeaways and Expert Insights

Experts warn that the use of alternative statutes to impose tariffs would be tested, and the economic effects of such actions would be significant. As noted by Alan Wm. Wolff of the PIIE, the nation can tap into the combined wisdom of the people’s elected representatives. The key takeaway is that the Supreme Court’s ruling is a cause for celebration, but the restoration of tariffs is a decision for another day.

February 21, 2026
China’s Economic Slump: Global Jitters and Ripple Effects

Introduction to China’s Economic Slowdown

China’s economic slowdown is no longer a headline — it’s a warning signal. A weakening housing market, sluggish investment, and falling exports are reshaping the world’s second-largest economy, with ripple effects across global markets and crypto sentiment. According to China Briefing, China’s economy in October 2025 showed mixed signals, with headline indicators pointing to weakness.

Key Indicators of China’s Economic Slowdown

Industrial output, retail sales, and investment slowed sharply, while exports declined for the first time in months. Yet, improving consumer confidence and stronger service spending suggest underlying resilience despite structural challenges. As Bloomberg reports, industrial production climbed 4.9% last month from a year earlier, the smallest gain since the start of this year.

Global Implications of China’s Economic Slowdown

The stagnation scenario: Beijing’s reform efforts flounder and China’s economy grinds slower and slower. Growth slows to 2.5% by 2030, according to Rhg. This slowdown will have significant implications for Africa and the global economy, highlighting key signposts that policymakers should look for in China’s economy.

Why China’s Economic Slowdown Understates Gains

As Rand notes, China’s GDP is below its pre-COVID trend. Household consumption of goods and services is down, while growth in total fixed asset investment has collapsed. Exports are propping up overall economic growth, with net exports in 2024 contributing the largest share to growth since 1997.

Conclusion and Future Implications

China’s economic slowdown is a complex issue with far-reaching implications. As Brookings suggests, the Chinese economy’s prospects and the adequacy of the government’s response are among the biggest uncertainties hanging over the global economy today. It’s essential to focus on the new economy, not the old, and understand the underlying resilience of China’s economy.

November 22, 2025