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Trump's Liberation Day tariffs at risk after court scuttles Don's trade plans… but the White House vows to fight back

Trump's Liberation Day tariffs at risk after court scuttles Don's trade plans… but the White House vows to fight back

Scottish Suna day ago

DONALD Trump's sweeping global tariffs are now at risk after a court has said he doesn't have the power to impose the levies himself.
A US federal court in New York on Wednesday blocked most of the import taxes from going into effect, ruling that the president had overstepped his authority.
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The US President held up a chart of the tariffs he was implementing
Credit: AFP
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Trump's tariffs caused a sharp response in Canada
Credit: Reuters
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Tariffs are levies paid on bringing a good or service into a country
Credit: Getty
The Court of International Trade ruling is a big setback for Trump, who has sought to reshape global trade and put America first by using its economic heft to cut deals.
Trump has started a global trade war with nearly every country by instituting a minimum 10 per tariff on their exports into the US.
He also slapped a 25 per cent tariff on Mexico and Canada, saying he needed to levies to stop the flow of illegal immigrants and the horror drug Fentanyl.
The court's order could spell an end to Trump's international trade war as it bars Trump's most sweeping tariffs, effectively erasing most of the trade restrictions Trump has announced since taking office.
But Trump is likely to appeal and take the fight all the way to the Supreme Court.
White House spokesman Kush Desai said: "Foreign countries' nonreciprocal treatment of the Unites States has fueled America's historic and persistent trade deficits.
"These deficits have created a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute.
"It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness."
The ruling does not state that tariffs themselves are illegal, but that the executive branch does not have the authority to impose them without Congress.
The president used a 1977 federal economic emergency law to justify a range of levies.
Trump's Liberation Day Tariffs signed in on Executive Order
The three-judge panel wrote in an unsigned opinion: "The question in the two cases before the court is whether the International Emergency Economic Powers Act of 1977 ("IEEPA") delegates these powers to the president in the form of authority to impose unlimited tariffs on goods from nearly every country in the world.
"The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder."
One of Trump's key aides, Stephen Miller, attacked the ruling in a post on social media saying: "The judicial coup is out of control."
Trump memorably held up a board showing rates he was about to set individual trading partners in the White House's Rose Garden when he announced the tariffs as part of a "liberation day".
China was clobbered with 34 per cent tariffs, Vietnam 46 per cent, Thailand 36 per cent and Cambodia 49 per cent.
Tariffs on China were eventually increased to a whopping 145 per cent as Trump sought to begin negotiations.
The ten per cent on Britain was at the bottom of the sliding scale devised by Trump's officials.
Markets were thrown into turmoil but calmed after he paused the larger tariffs for 90 days.
He also suspended some of the higher duties pending negotiations with individual countries and blocs.
Britain has signed a new trade deal with Trump following the imposition of the tariffs - how that will be affected is not yet clear.

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Morning Bid: Tariffs return along with capital tax fears
Morning Bid: Tariffs return along with capital tax fears

Reuters

time14 minutes ago

  • Reuters

Morning Bid: Tariffs return along with capital tax fears

LONDON, May 30 (Reuters) - What matters in U.S. and global markets today By Mike Dolan, opens new tab, Editor-At-Large, Financial Industry and Financial Markets This week's U.S. tariff whiplash has left financial markets dazed, as anxiety about foreign capital taxes and fresh rate cut hopes add to the confusion. June promises to be a tense month in an already turbulent year. It's Friday, so today I'll provide a quick overview of what's happening in global markets and then offer you some weekend reading suggestions away from the headlines. Today's Market Minute * A federal appeals court temporarily reinstated the most sweeping of President Donald Trump's tariffs on Thursday, a day after a U.S. trade court ruled that Trump had exceeded his authority in imposing the duties and ordered an immediate block on them. * The Trump administration's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures. * The safety of Germany's gold reserves held overseas and in New York in particular, until recently mainly a talking point for the country's far-right party and gold bugs, is becoming a matter of public debate with Donald Trump back in the White House. * While we may not see a full-blown debt crisis in the U.S., there's a growing sense that "the fiscal" matters for markets more now than it has for decades. Reuters columnist Jamie McGeever explores the assumptions baked into the current U.S. debt and deficit projections. * Reuters columnist Gavin Maguire explains why developers and exporters of natural gas should be alarmed by the decline in thermal coal exports coming out of Indonesia. Tariffs return along with capital tax fears A federal appeals court temporarily reinstated the most sweeping of Donald Trump's import tariffs late on Thursday. Allowing the stay while the case progresses, the court ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9. Trump has promised to take the matter all the way to the Supreme Court. Thursday's rally in stocks (.SPX), opens new tab and the dollar (.DXY), opens new tab faded quickly, with many investors convinced the administration would seek other routes to impose the levies even if it loses its case. The whole episode raises as many questions as answers, not least regarding when tariffs will be imposed and which ones will eventually come to pass. This heightens business uncertainty as much as it offers any marginal relief. Countries in bilateral trade talks may be emboldened to avoid making concessions until there is more clarity around the legal issue, meaning we could see a shortening of the already narrow six-week negotiating period left before July 9's re-imposition of "reciprocal tariffs". Meanwhile, there are also questions over the U.S. fiscal bill now heading through the Senate, including how much delayed or reduced tariffs will impact revenue estimates and deficit calculations. What's more, investors are increasingly concerned about provisions in the bill - namely Section 899 - that allow the administration to impose taxes of up to 20% on foreign asset holdings. Some fear this could cause the tariff war to morph into a capital war, unnerving overseas investors anew. Resorting to non-tariff threats would only up the ante in tough trade talks with Europe, which is already countering with threats against U.S. tech firms. On top of all this, we have next month's annual Treasury review of overseas currency manipulation. In short, we could soon seen more trade weapons drawn into the fray. There's even growing angst overseas that foreign holdings of gold at the U.S. central bank could be at risk. But amid all the speculation, U.S. Treasuries rallied sharply on Thursday. Some of that was down to signs of weakening economic activity, with weekly jobless claims rising, pending homes sales weakening and first quarter GDP revisions cutting consumer spending estimates and showing a drop in corporate profits. That was enough to nudge Federal Reserve easing hopes back up, with futures now pricing in two full rate cuts by yearend. The drop in Treasury yields was helped by a robust auction of 7-year notes, which Morgan Stanley said left primary dealers with just 4.8% of the paper, the lowest primary dealer takedown on record for any Treasury auction. Amid all this, Trump called Fed Chair Jerome Powell to the White House on Thursday for their first face-to-face meeting since he took office in January. He told the central bank chief he was making a "mistake" by not lowering interest rates. Underscoring its independence, the Fed issued a statement after the meeting saying it "will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective, and non-political analysis." The April reading for the Fed's favored inflation gauge is due for release on Friday. Ahead of the open, U.S. stock futures were back slightly in the red, 10-year Treasury yields flirted with their lowest in a fortnight and the dollar (.DXY), opens new tab was firmer after Thursday's sharp reversal. Elsewhere, European stocks (.STOXXE), opens new tab were higher, but Japan's Nikkei (.N225), opens new tab relapsed more than 1%. Tokyo core inflation readings for May came in higher than forecast at 3.6%, the most in two years, upping speculation that there will be more Bank of Japan interest rate hikes ahead. European inflation updates for this month were much softer, buoying hopes of further European Central Bank easing as the ECB gets set to meet again next week. Weekend reading suggestions Here are some articles away from the day-to-day headlines that you may find interesting. * GENDER Z: In democracies worldwide, a political gender divide is intensifying among Gen Z voters, with young men voting for right-wing parties and young women leaning left, a break from pre-pandemic years when both tended to vote for progressives. Reuters' Heejung Jung, Mark Bendeich and Thomas Escritt examine this trend. * RESERVE SWITCH: Just over half of 88 central bank reserve managers said they expected the pace of reserve diversification to accelerate over the next 12 months, according to the annual HSBC Reserve Management Trends survey. Almost 80% of respondents thought de-dollarisation was increasing, though on a gradual basis., opens new tab * DEFENSE HELP WANTED: While the European Union's 800 billion euro defense spending push is expected to create hundreds of thousands of jobs over the next decade, specially trained AI engineers, data scientists, welders and mechanics are in short supply. Reuters' Michael Kahn, Christoph Steitz, Dominique Patton spoke to more than a dozen companies, recruiters and workers who said that along with hiking wages and benefits, arms makers are poaching from other sectors. * MGGA: Making Germany Grow Again is the theme of an IMF podcast with Ulrike Malmendier, a professor at University of California, Berkeley and member of the German Council of Economic Advisors. Malmendier explains how ageing Germany needs to attract more skilled migrants, rethink its capital markets and pensions system and address energy supply problems in order to resume its role as Europe's powerhouse economy., opens new tab * FUZZY FEDSPEAK: Households and professional forecasters often hear Federal Reserve speeches on inflation and monetary policy in different ways, according to a paper on Fed communications published on CEPR's VoxEU site., opens new tab * EV EVERGRANDE?: An intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Reuters' Norihiko Shirouzu reveals how steep price cuts may signal a potential tipping point, where weaker players can no longer sustain deepening losses. * 'SACRIFICE RATIOS' AND PRICE LEVEL: Central bank research show how 'sacrifice ratios' - or output losses per inflation reduction - were historically low during post-pandemic monetary tightening. But it ignores politically toxic price level increases, something that should be included in the list of 'tradeoffs' assessed when conducting policy, according to an NBER paper by economists Kristin Forbes, Jongrim Ha and Ayhan Kose., opens new tab * DOLLAR SACRIFICE?: Donald Trump's erratic U.S. trade threats against Europe and de-funding of universities are the sorts of policies that come at a price, not least damaging the dollar's cyclical and structural outlook. Writing on Project Syndicate, former Goldman Sachs global economist and UK Treasury minister Jim O'Neill explains why he thinks the implications for the future of American power are profound., opens new tab * DRONE WARS: Indian and Pakistani militaries have deployed high-end fighter jets, conventional missiles and artillery during decades of clashes, but the four days of fighting in May marked the first time New Delhi and Islamabad utilized unmanned aerial vehicles at scale against each other. Read the fascinating report by Reuters' Devjyot Ghoshal, Ariba Shahid and Shivam Patel. * INDUSTRIAL POLICY REDUX: Government subsidies, investment incentives, and other industrial-policy actions have almost quadrupled since 2017 - mostly in critical industries such as defense, chips and high-end equipment, according to research from the consulting firm McKinsey., opens new tab Chart of the day Companies are struggling to give guidance on the rest of the year's earnings given the high level of uncertainty related to U.S. tariff policy. Today's events to watch * U.S. April personal consumption and spending and personal consumption expenditures inflation gauge (8:30 AM EDT), April international goods trade (8:30 AM EDT), April wholesale/retail inventories (8:30 AM EDT), May Chicago business survey (9:45 AM EDT) University of Michigan final May household sentiment survey (10:00 AM EDT); Canada Q1 GDP revision (8:30 AM EDT) * San Francisco Federal Reserve President Mary Daly, Dallas Fed President Lorie Logan, Atlanta Fed chief Raphael Bostic and Chicago Fed boss Austan Goolsbee all speak. * U.S. corporate earnings: Marvell Technology Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.

When it comes to Iran, Trump is all mouth and no trousers
When it comes to Iran, Trump is all mouth and no trousers

Telegraph

time17 minutes ago

  • Telegraph

When it comes to Iran, Trump is all mouth and no trousers

Remember Donald Trump's vow that there would be 'all hell to pay' if Hamas hadn't released all the hostages by the time he took office? What happened to that? Four months later and for all his tough talk, the president is slumping into a Biden crouch. His envoy, Steve Witkoff, is poised to unveil a revised Israel-Hamas ceasefire proposal amid optimistic leaks, mainly from sources in the United States, that a larger deal may be in the offing. This will likely entail the phased release of ten hostages out of the 20 presumed still living, as well as the remains of a further 18. This will leave the jihadis in control of ten living hostages and 20 bodies, which in their depraved eyes amounts to a pretty significant hand of playing cards to keep. In return, Israel may release 125 notorious murderers with much innocent blood on their hands, not to mention military experience and an undimmed fanaticism in their souls, as well as 1,111 prisoners captured after October 7 and the remains of 180 terrorists killed in battle. The latter is an unusual demand to be emphasised by Hamas, which appears to be mimicking Jewish veneration of the dead. Aid will also be ramped up. All this will be arranged around a 60-day pause in fighting. The White House seems confident that it has reassured Israel that either the campaign or further hostage negotiations, or both, may be recommenced if the deadline passes with no progress in talks for a final end to hostilities. Israel has reportedly indicated it will accept. So far, so Joe Biden. For those Trump supporters who were looking forward to seeing Hamas blasted to kingdom come as soon as his feet hit the Oval carpet, it all looks rather flaccid. What happened to his cherished Riviera? Just like during the Biden era, we have even witnessed an extraordinary propaganda campaign waged by Hamas, the United Nations, a range of NGOs and the international media to obstruct a joint Israeli-American attempt to create a means of delivering aid directly to the people of Gaza while bypassing their jihadi overlords. As Israel has looked in danger of winning, the disinformation has hit fever pitch. Gaza, we have been told, is on the verge of famine, which quickly elides into claims of an actual famine, despite no evidence of deaths of starvation and plentiful videos on social media of reasonable conditions in the Strip. This has been accompanied by a plethora of fabricated, exaggerated or just plain fishy claims made by Hamas and magnified by a venomously Israelophobic elite and their radical progressive allies. The arts world swung into action. R&B musicians 'spoke out' and almost 400 novelists signed a letter pledging to brand Israel's campaign 'genocide'. Odd kind of genocide when the aggressor warns civilians before it attacks, fails for two-and-a-half years to complete the supposed crime despite having the firepower to do so in two-and-a-half hours, and goes out of its way to deliver aid. If anybody had been paying attention, they would have observed that Israel had been accused of 'genocide' in earnest since October 8, and in general for many decades before that. The fact that the job of a novelist is literally to make up stories was apparently lost upon them. The disinformation has been as transparent as it has been ubiquitous. Yet following in the footsteps of Joe Biden before him, Trump failed to condemn this wave of lies, instead dignifying it by adding the claim of his own that 'a lot of people are starving' while hanging out with a bunch of Arab leaders. It doesn't stop there. We had high hopes that Iran would finally meet some serious opposition when the Donald returned to office. After all, this was the man who had authorised the killing of the totemic Iranian major general Qasem Soleimani, king of overseas meddling, in 2020. Yet just as the time is ripe for denuclearising Iran by way of bunker busters – Tehran's air defences were taken out by Israel last year and Hezbollah has been decapitated and castrated – Trump seems to be bottling it. The President publicly confirmed that he had asked Benjamin Netanyahu not to launch an attack while he was negotiating with the Ayatollah, amid days of speculation about a tense telephone call between the two men and American assessments that Israel may be preparing a strike of its own. Jerusalem is deeply concerned that an impending Trump-Khamenei deal would take the threat of an assault by the United States off the table, while leaving Iran in a holding pattern that would allow the Ayatollah to advance his nuclear programme again when he's good and ready. There are also serious worries about an interim deal that would offer Iran sanctions relief before a nuclear accord is reached, hosing billions of dollars into its coffers that may be used to rebuild Hezbollah and its other devastated assets. This would allow the Iranians breathing space to do what they do best: drag on the talks while pushing their agenda forward, quietly but steadily. We have even seen growing reports of friction between Trump and Netanyahu, which is beginning to look rather like the 'daylight' famously placed by Biden between the United States and its beleaguered ally. It's all a far cry from the berserker rhetoric that Trump so loudly trumpeted before he took office. Has he been mugged by reality? Or is the 47 th president all mouth and no trousers?

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