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Over the past year and a half, China has shown the world the power of its economic arsenal—starting with the United States. In April 2025, Beijing retaliated forcefully against U.S. tariffs, imposing matching across-the-board levies and export controls on rare-earth elements. This counterpunch rattled bond markets and disrupted auto supply chains, forcing Washington to seek a truce that persists to this day. Next, China targeted Japan.
Peter Harrell recently wrote a thoughtful and convincing piece in Lawfareabout the legal challenges that President Trump may face if he uses the International Emergency Economic Powers Act (IEEPA) to impose tariffs on Mexico, Canada, and China. I generally agree with Harrell’s conclusion that, while a court may ultimately uphold Trump’s imposition of tariffs, there are sizable counterarguments to consider, both facially and as applied in this case. On Feb.
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