Trump to visit Beijing next week as court ruling strips his tariff leverage

Trade is the center of this story. Power is the real subject. Donald Trump is heading to Beijing on May 14 and 15 to meet Xi Jinping, but he is arriving after another court loss that weakens one of his favorite bargaining tools. That matters because Trump likes to negotiate with a visible threat on the table — and right now that threat looks shakier than it did even a week ago. ### What did the court actually do? A divided panel on the U.S. Court of International Trade ruled on May 7 that Trump’s 10% global tariff, imposed under Section 122 of the 1974 Trade Act, was unlawful. This was already his backup plan after the Supreme Court knocked out a broader set of worldwide tariffs earlier in 2026. The judges did not erase the tariff for everyone — they blocked it only for Washington state and two companies that sued — but the ruling still tells every negotiator in Beijing that Trump’s legal footing is unstable. (cnbc.com) ### Why does that matter for Beijing? Because tariffs are not just taxes here — they are leverage. Trump has spent years using the threat of higher duties as a way to force concessions, or at least to make the other side think he can impose pain quickly. But if courts keep saying no, then the threat starts to look like a bluff with paperwork attached. Beijing does not need the tariffs to disappear overnight to benefit. It just needs to believe Trump has fewer clean options than he says he does. (politico.com) ### Are the tariffs gone now? Not really. The catch is that the ruling was narrow, so most importers are still paying while the appeal plays out. And the administration is already signaling it will try again through Section 301 — a different trade law aimed at unfair trade practices that has survived past legal fights better than Trump’s emergency-style tariff theories. So this is not the end of tariff pressure. It is more like watching one ladder break while the White House drags over another. (politico.com) ### So why is Trump still bringing CEOs? Because he wants deals as much as he wants pressure. The White House has been assembling a business delegation for events around the summit, with invitations going to executives from major U.S. companies and internal arguments over how big that group should be. That tells you the administration is trying to do two things at once — talk tough on security while still chasing splashy commercial wins Trump can sell as proof that personal diplomacy works. (usnews.com) ### Where does Iran fit into this? Uncomfortably close to the summit. Days before the trip, the State Department sanctioned three Chinese companies — Meentropy Technology, The Earth Eye, and Chang Guang Satellite Technology — accusing them of helping Iran’s military with satellite imagery. Washington is also pressing Beijing to use its ties with Tehran to help reopen the Strait of Hormuz and keep the Iran war from spilling further into global shipping and energy markets. (politico.com) So Trump is going to Beijing asking for cooperation while also escalating pressure. That is a hard script to balance. ### Does this give Xi an edge? At least a temporary one. Xi gets Trump on his turf, after a summit delay tied to the Iran war, while U.S. courts keep trimming Trump’s tariff authority. That does not mean China suddenly holds all the cards. But it does mean Trump arrives needing the meeting to produce something tangible — stability, a trade framework, business announcements, maybe help on Iran — more than he would like to admit. (politico.com) ### What should readers watch for? Watch whether Trump leaves Beijing with a headline deal or just atmospherics. If the deliverable is mostly CEO photo ops and vague promises, then the real takeaway will be that his legal setbacks mattered. If he gets Chinese movement on trade or Iran, he can argue the courts clipped his weapon but not his influence. (cnbc.com) ### Bottom line? Trump is still going to Beijing as the louder player. But he is no longer showing up with the same tariff hammer — and Xi knows it. (politico.com)