{"id":59091,"date":"2026-02-25T07:08:45","date_gmt":"2026-02-25T11:08:45","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/trump-touts-golden-age-in-sotu-as-supreme-court-strikes-down-tariffs-xi-and-merz-seek-strategic-reset-in-beijing\/59091\/"},"modified":"2026-02-25T07:08:45","modified_gmt":"2026-02-25T11:08:45","slug":"trump-touts-golden-age-in-sotu-as-supreme-court-strikes-down-tariffs-xi-and-merz-seek-strategic-reset-in-beijing","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-touts-golden-age-in-sotu-as-supreme-court-strikes-down-tariffs-xi-and-merz-seek-strategic-reset-in-beijing\/59091\/","title":{"rendered":"Trump Touts &#8216;Golden Age&#8217; in SOTU as Supreme Court Strikes Down Tariffs; Xi and Merz Seek Strategic Reset in Beijing"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> used his 2026 State of the Union address to declare a new &quot;golden age&quot; for the U.S. economy<\/strong>, despite a major <strong>Supreme Court<\/strong> ruling that struck down his primary tariff mechanism as unconstitutional.<\/li>\n<li><strong>The administration has pivoted to &quot;Plan B&quot; tariffs<\/strong>, invoking <strong>Section 122 of the Trade Act of 1974<\/strong> to impose a <strong>10% to 15% global baseline tariff<\/strong> for a temporary 150-day period following the court&#39;s rejection of IEEPA-based duties.<\/li>\n<li><strong>Chinese President Xi Jinping and German Chancellor Friedrich Merz met in Beijing<\/strong> to elevate bilateral ties to &quot;new levels,&quot; focusing on stabilizing <strong>China-EU relations<\/strong> amid global trade volatility.<\/li>\n<li><strong>Strategic cooperation was pledged in high-tech and industrial sectors<\/strong>, specifically targeting <strong>Artificial Intelligence (AI)<\/strong>, <strong>pharmaceuticals<\/strong>, <strong>automotive<\/strong>, and <strong>chemical industries<\/strong>.<\/li>\n<li><strong>The U.S. Supreme Court&#39;s 6-3 decision<\/strong> in <em>Learning Resources Inc. v. <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/em> has forced a shift in trade policy, returning significant revenue-raising authority to <strong>Congress<\/strong> and creating a $175 billion question regarding potential tariff refunds.<\/li>\n<\/ul>\n<p>U.S. President <strong>Donald Trump<\/strong> delivered a defiant State of the Union address on Tuesday, asserting that the American economy is &quot;back, bigger, better, and stronger than ever before.&quot; Trump brushed aside recent legal setbacks, claiming his trade policies have sparked a manufacturing renaissance and that the nation has &quot;seen nothing yet&quot; in terms of growth. He noted that core inflation has hit its lowest level in over five years, though critics pointed out that the current <strong>2.4% rate<\/strong> remains a focal point of public anxiety.<\/p>\n<p>The speech came just days after the <strong>U.S. Supreme Court<\/strong> issued a landmark <strong>6-3 ruling<\/strong> striking down the &quot;Liberation Day&quot; tariffs. The court concluded that the <strong>International Emergency Economic Powers Act (IEEPA)<\/strong> does not grant the president the authority to impose revenue-raising taxes, a power reserved for <strong>Congress<\/strong>. Trump castigated the justices during his address, calling the decision &quot;unfortunate&quot; and an &quot;embarrassment,&quot; while immediately announcing a pivot to <strong>Section 122<\/strong> of the Trade Act of 1974 to maintain a <strong>10% global tariff<\/strong> (with intentions to hike it to <strong>15%<\/strong>).<\/p>\n<p>While Washington grapples with domestic legal battles, <strong>German Chancellor Friedrich Merz<\/strong> arrived in Beijing for a high-stakes summit with <strong>President Xi Jinping<\/strong> and <strong>Premier Li Qiang<\/strong>. Xi urged both nations to advance their comprehensive strategic partnership to &quot;new levels,&quot; emphasizing that Germany remains China&#39;s most vital trading partner in Europe. Merz, leading a delegation of 30 senior executives, is seeking to balance &quot;the right amount of cooperation&quot; with the reality of increasing competition from Chinese firms.<\/p>\n<p><strong>Premier Li Qiang<\/strong> specifically called for deepened cooperation in &quot;traditional&quot; sectors like the <strong>automotive<\/strong> and <strong>chemical<\/strong> industries, while pushing for joint research and development in <strong>AI<\/strong> and <strong>biopharmaceuticals<\/strong>. Li expressed hope that Germany would serve as a &quot;stabilizing anchor&quot; for <strong>China-EU relations<\/strong>, which have been strained by recent export curbs and trade disputes. During his visit, Merz is scheduled to tour a facility for Mercedes-Benz Group AG (<a href=\"\/stock\/MBG\">MBG<\/a>) and meet with tech leaders in Hangzhou, the headquarters of Alibaba (<a href=\"\/stock\/BABA\">BABA<\/a>).<\/p>\n<p>The geopolitical shift comes as German manufacturers face mounting pressure from both U.S. protectionism and Chinese domestic competition. Merz\u2019s visit\u2014the first by a foreign leader since the Chinese New Year\u2014highlights Berlin&#39;s pragmatic approach to maintaining market access in Asia. Despite the &quot;competition&quot; theme of the trip, the two sides emphasized the need for &quot;predictable relations&quot; and &quot;mutual respect&quot; to ensure global economic stability.<\/p>\n<p>In the U.S., the financial implications of the <strong>Supreme Court<\/strong> ruling remain a primary concern for the private sector. The <strong>Penn-Wharton Budget Model<\/strong> estimates that the federal government could owe importers more than <strong>$175 billion in refunds<\/strong> if the previous tariffs are fully invalidated by lower courts. While Trump\u2019s new <strong>Section 122<\/strong> tariffs provide a temporary 150-day window of executive control, the administration will eventually require <strong>Congressional<\/strong> approval to extend these measures, setting the stage for a major legislative battle over the future of U.S. trade policy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Trump used his 2026 State of the Union address to declare a new &quot;golden age&quot; for the 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