International News 23 February 2026
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China Unlikely to Boost U.S. Soybean Purchases After Supreme Court Tariff Ruling
China is unlikely to immediately increase large-scale purchases of U.S. soybeans despite recent claims by U.S. President Donald Trump, after the Supreme Court of the United States overturned his broad tariff policy. The court ruled that Trump exceeded his authority by imposing sweeping tariffs under national emergency powers, throwing U.S. trade policy back into uncertainty. Soybean futures had surged 8.49% since February 4 after Trump stated on Truth Social that China would buy an additional 8 million metric tons of U.S. soybeans. However, contracts edged lower on Friday as analysts questioned whether such purchases would materialize without tariff pressure to influence Beijing’s decisions. Market participants note that U.S. soybeans remain more expensive than Brazilian supplies, weakening Washington’s bargaining power. China had already purchased around 12 million metric tons of U.S. soybeans under an October trade truce, while Brazil is currently harvesting a large crop with more competitive export prices. Without tariffs as leverage, U.S. exports may struggle to compete against Brazil’s abundant and cheaper supply. Traders are now watching whether the Trump administration will seek alternative legal avenues to reinstate tariffs and whether China, the world’s largest soybean importer, will maintain some U.S. buying or pivot more decisively toward Brazil and Argentina, which are not involved in trade tensions with Beijing.
Supreme Court Tariff Ruling Adds New Uncertainty to Fed Rate Outlook
The Supreme Court of the United States decision to overturn most of President Donald Trump’s sweeping tariffs has injected fresh uncertainty into the Federal Reserve’s interest rate path. Over the past year, Fed officials have been assessing how sharply higher import tariffs affected inflation and economic growth, with some recently gaining confidence that last year’s tariff-driven price pressures would soon fade. Now, policymakers face renewed questions over whether disinflation could stall or reverse—especially if the administration seeks alternative legal avenues to reinstate similar trade measures. Raphael Bostic warned the ruling could create significant disruption for businesses, particularly if firms are required to reclaim previously paid tariffs or adjust supply chains again amid shifting trade rules. Financial markets have reflected this uncertainty, swinging between expectations that the Fed could begin cutting rates in June or delay until July. Treasury Secretary Scott Bessent said legal disputes over tariff refunds could take weeks, months, or even years, while the administration signaled plans to impose alternative import levies under different legal authorities, including a new 10% tariff on broad imports. Alberto Musalem noted that if the new tariffs merely replace the old ones one-for-one, his economic outlook may not shift significantly, though transitional uncertainty could weigh on business planning. Meanwhile, Lorie Logan emphasized the Fed will continue monitoring developments. With legal and policy dynamics still evolving, the central bank faces added complexity in determining the timing and scale of future rate cuts amid persistent inflation and economic uncertainty.
Trump Imposes Temporary 10% Global Tariff After Supreme Court Ruling
U.S. President Donald Trump swiftly replaced the broad import tariffs struck down by the Supreme Court of the United States with a temporary 10% global tariff for up to 150 days, while ordering a new investigation that could justify further trade measures. The court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. In response, Trump signed an executive order invoking Section 122 of the Trade Act of 1974, which allows the president to impose tariffs of up to 15% for 150 days to address a “large and serious” balance-of-payments deficit without a lengthy probe. The new 10% duty partially replaces the earlier 10%–50% tariffs and halts collection of those invalidated by the court. Certain exemptions remain, including aerospace products, passenger vehicles and some light trucks, goods from Mexico and Canada that comply with the USMCA trade pact, as well as specific pharmaceuticals and critical minerals. Treasury Secretary Scott Bessent said the 10% tariff—alongside potential additional measures under Section 301 (unfair trade practices) and Section 232 (national security)—is expected to keep 2026 tariff revenues broadly unchanged. He noted the administration aims to restore similar effective tariff levels through alternative legal channels, albeit in a more indirect and complex manner.