Trump tariffs live updates: Court of International Trade deems majority of tariffs 'unlawful'

Yahoo

a day ago

The US Court of International Trade has voted to block the vast majority of President Trump's global tariffs after deeming the method used to enact them 'unlawful'. This places most of the tariffs on an indefinite hold while the administration appeals the decision through the Supreme Court.
Tariffs impacted include the flat-rate 'reciprocal' tariffs aimed at US trade partners as well as and key China-focused duties, while leaving some duties, specifically those covering steel, aluminum, and certain Chinese goods, intact.
Prior to the court's decision, President Trump on Wednesday criticized an emerging Wall Street trading philosophy in response to his ever-shifting tariff policies.
The term "TACO" trade — short for "Trump Always Chickens Out" — has come in response to Trump's frequent pattern with tariffs: High tariffs send markets reeling until Trump backs off.
Trump called a reporter who asked him about the term "nasty" before defending his strategy as one that has helped the US gain leverage in trade negotiations.
"It's called negotiation," he said.
Negotiations have continued in earnest this week, with an FT report on Wednesday saying India has offered the US steep tariff cuts but is seeking to retain high duties on some agricultural commodities.
India is not the only trading partner seeking a tariff reprieve. On Wednesday, the EU trade chief Maroš Šefčovič said the European Commission is discussing with the US possible cooperation in sectors such as semiconductors, steel, and aerospace, and is in search of a deal to limit tariffs.
The European Union has agreed to fast-track trade talks with the US in a bid to avoid Trump's 50% tariffs — which, in an about-face, he announced would be delayed until July 9.
Šefčovič said the EU held "good calls" with Trump administration officials on Monday after the close trading partners moved forward with negotiations amid Trump's tariff-fueled push to rework global trade relationships.
Trump had been frustrated with the pace of negotiations, saying last week that the bloc has been "very difficult to deal with."
Meanwhile, Apple (AAPL) remains in high focus after Trump said the company would face 25% tariffs if it didn't move iPhone production to the US. He later said that would apply to other phone makers, including Samsung (005930.KS).
Nvidia (NVDA) is also set for a high-stakes earnings report Wednesday, its first since many of the tariffs went into effect. Its stock has swung wildly this year amid Trump's tariffs and other moves.
Live updates: Nvidia's earnings report
Here are the latest updates as the policy reverberates around the world.
The decision's focus on IEEPA immediately throws into doubt some of the most far-reaching of Trump's tariff actions since taking office. Most notably, those include his "Liberation Day" tariffs of 10% on nearly the entire world, as well as the current threat of higher tariffs on countries that fail to reach a deal during his 90-day pause.
The president has also relied on IEEPA to impose duties on nations such as Mexico, Canada, and China, claiming that the nations' failure to curb the flow of illegal drugs and migration into the US threatened US national security. [...]
Duties based on other laws like those Trump has imposed on certain aluminum and steel products are not included in the court's decision.
Recent duties on automobiles imposed by the president use so-called Section 232 tariff authority derived from a separate law called the Trade Expansion Act of 1962.
The tariffs on steel and aluminum also rely on Section 232.
Read more here.
President Donald Trump's tariffs have been deemed illegal and blocked in a landmark trade court ruling that ruled the president used unlawful emergency powers by imposing broad levies on imports.
The decision suspends Trump's flat-rate tariffs and key China-focused duties, while leaving some tariffs, specifically those covering steel, aluminum, and some Chinese goods, intact.
The ruling, issued by the Court of International Trade, is set to be appealed and could reach the Supreme Court. Investors are watching closely, as the outcome will reshape the global trade landscape and has huge ramifications on trust in Trump as a market manager.
Markets, already volatile amid ongoing tariff uncertainty since the April 2 executive order, reacted swiftly to the news with major gauge futures making leaps of up to 2%.
Bloomberg reports:
Read more here.
President Trump on Wednesday criticized an emerging Wall Street trading philosophy in response to his ever-shifting tariff policies.
The term "TACO trade" — apparently first coined by the Financial Times early this month — has been flying around Wall Street in recent weeks and entered even more into the public consciousness over the past few days.
The acronym stands for "Trump Always Chickens Out." The pattern is clear: Trump announces heavy tariffs, sending markets reeling until he backs off, sending markets flying.
A reporter asked Trump at the White House on Wednesday for his response to the school of thought. He did not appear to be aware of the acronym, but was also not pleased to learn its meaning.
"Isn't that nice ... I've never heard that," he said, before launching into a defense of recent moves. Earlier in May, the US reached a detente with China after the countries imposed massive tariffs on each other. Then last week, Trump announced massive 50% tariffs on EU imports, only to backtrack a couple days later and push back his deadline for more negotiating time.
"After I did what I did, they said, 'We'll meet anytime you want,'" Trump said of the EU. He said of China, "In many ways, I think we really helped China tremendously."
"Don't ever say what you said," Trump then told the reporter. "That's a nasty question."
AutoZone's (AZO) management said on Tuesday that inflation from tariffs hasn't had a major impact on costs yet because it takes a while for its products to ship to the US.
However, executives at the auto parts retailer said they expect inflation to accelerate if substantial tariffs remain in place.
"I think one of the reasons that you haven't seen a lot of the tariff cost in our side of the business is ... most of our inventory turns relatively slow compared to many other industries, hard parts in particular," AutoZone CEO Philip Daniele said on the company's fiscal third quarter earnings call. "And that product just hasn't shown up here in the country. And as you know, this stuff has changed pretty significantly over the last 90 days or 120 days. I mean there will be an impact to tariffs on the cost of goods."
AutoZone reported SKU inflation of 1% for the quarter and said it expects to see inflation of 3% over time. The company sources many of its products from China and other East Asian countries, Eastern Europe, and Mexico.
AutoZone CFO Jamere Jackson noted that, other than tariffs, a lot of the drivers of cost increases have come down, particularly freight prices.
"However, if we do see significant tariffs, that will indeed have an inflationary impact," Jackson stated.
Reuters reports:
German carmakers BMW, Mercedes-Benz and Volkswagen are in talks with the U.S. Department of Commerce on a tariff deal that would involve a mechanism to offset imports and exports, the Handelsblatt business daily reported on Wednesday.
In return for tariff relief, the companies could invest billions in the United States, the report said citing company sources. It did not give a more exact sum.
Reuters reports:
Read more here.
Yahoo Finance's senior reporter Hamza Shaban reports on Wall Street's dilemma with Trump's tariffs:
Read more here.
More retailers are feeling the impact of Trump's tariffs as both Macy's (M) and Michael Kors parent company Capri (CAPR) lowered their annual profit and revenue forecasts on Wednesday, citing tariffs as the cause.
Capri cut its revenue forecast for 2026, signaling that tariff-related uncertainty was weighing on demand for its handbags and accessories in North America and Asia.
Macy's followed in a similar fashion: Yahoo Finance senior reporter Brooke DiPalma said the company reaffirmed its sales guidance, but revised its earnings outlook due to uncertainty surrounding tariffs, consumer sentiments, and the competitive landscape.
Macy's is facing multiple macro headwinds as consumer sentiment sags, costs rise with Trump's tariffs, and trends grow toward e-commerce and direct-to-consumer.
Read more here.
Reuters reports:
Read more here.
India has offered steep cuts to its import tariffs on a range of goods in talks with the US, but is said to be retaining high duties on certain agricultural commodities, according to people familiar with the negotiations.
The FT reports:
Read more here.
Reuters reports:
Read more here.
As the US and European Union negotiate a new trade deal to avoid President Trump-imposed tariffs, it's worth taking a moment to note that the US and the EU have the largest bilateral trade relationship in the world.
According to the Council of the European Union (and converted to USD), the transatlantic trade in goods and services topped 1.8 trillion in 2023 after a post-pandemic surge:
A measure of tariff revenue has spiked this month as importers paid the baseline "Liberation Day" tariffs that went into effect on April 5, along with other duties set by President Trump.
Government receipts for "Customs and Certain Excise Taxes" have already topped $22.3 billion this month, according to Treasury Department data.
Yahoo Finance's Ben Werschkul reports:
Read more here.
Yahoo Finance's Jennifer Schonberger reports:
Read more here.
Yahoo Finance's Josh Schafer reports:
Read more here.
The Chinese Premier Li Qiang has urged Southeast Asian and Gulf states to help create a 'big market', in a bid to counter US efforts to isolate China's economy.
Bloomberg News reports:
Read more here.
Reuters reports:
Read more here.
Retailers, who have suffered under Trump's tariffs, are increasingly warming to offers to sell in order to escape market volatility that has caused company valuations to seesaw in recent months, according to a report in Reuters.
Reuters reports:
Read more here.
Bloomberg News reports:
Read more here.
Malaysia's Trade and Industry minister Zafrul Aziz said that the US reducing its proposed tariffs on Malaysia to 10% is a positive move, conceding that a previously hoped for levy of zero may not be possible.
Bloomberg News reports:
Read more here.
The decision's focus on IEEPA immediately throws into doubt some of the most far-reaching of Trump's tariff actions since taking office. Most notably, those include his "Liberation Day" tariffs of 10% on nearly the entire world, as well as the current threat of higher tariffs on countries that fail to reach a deal during his 90-day pause.
The president has also relied on IEEPA to impose duties on nations such as Mexico, Canada, and China, claiming that the nations' failure to curb the flow of illegal drugs and migration into the US threatened US national security. [...]
Duties based on other laws like those Trump has imposed on certain aluminum and steel products are not included in the court's decision.
Recent duties on automobiles imposed by the president use so-called Section 232 tariff authority derived from a separate law called the Trade Expansion Act of 1962.
The tariffs on steel and aluminum also rely on Section 232.
Read more here.
President Donald Trump's tariffs have been deemed illegal and blocked in a landmark trade court ruling that ruled the president used unlawful emergency powers by imposing broad levies on imports.
The decision suspends Trump's flat-rate tariffs and key China-focused duties, while leaving some tariffs, specifically those covering steel, aluminum, and some Chinese goods, intact.
The ruling, issued by the Court of International Trade, is set to be appealed and could reach the Supreme Court. Investors are watching closely, as the outcome will reshape the global trade landscape and has huge ramifications on trust in Trump as a market manager.
Markets, already volatile amid ongoing tariff uncertainty since the April 2 executive order, reacted swiftly to the news with major gauge futures making leaps of up to 2%.
Bloomberg reports:
Read more here.
President Trump on Wednesday criticized an emerging Wall Street trading philosophy in response to his ever-shifting tariff policies.
The term "TACO trade" — apparently first coined by the Financial Times early this month — has been flying around Wall Street in recent weeks and entered even more into the public consciousness over the past few days.
The acronym stands for "Trump Always Chickens Out." The pattern is clear: Trump announces heavy tariffs, sending markets reeling until he backs off, sending markets flying.
A reporter asked Trump at the White House on Wednesday for his response to the school of thought. He did not appear to be aware of the acronym, but was also not pleased to learn its meaning.
"Isn't that nice ... I've never heard that," he said, before launching into a defense of recent moves. Earlier in May, the US reached a detente with China after the countries imposed massive tariffs on each other. Then last week, Trump announced massive 50% tariffs on EU imports, only to backtrack a couple days later and push back his deadline for more negotiating time.
"After I did what I did, they said, 'We'll meet anytime you want,'" Trump said of the EU. He said of China, "In many ways, I think we really helped China tremendously."
"Don't ever say what you said," Trump then told the reporter. "That's a nasty question."
AutoZone's (AZO) management said on Tuesday that inflation from tariffs hasn't had a major impact on costs yet because it takes a while for its products to ship to the US.
However, executives at the auto parts retailer said they expect inflation to accelerate if substantial tariffs remain in place.
"I think one of the reasons that you haven't seen a lot of the tariff cost in our side of the business is ... most of our inventory turns relatively slow compared to many other industries, hard parts in particular," AutoZone CEO Philip Daniele said on the company's fiscal third quarter earnings call. "And that product just hasn't shown up here in the country. And as you know, this stuff has changed pretty significantly over the last 90 days or 120 days. I mean there will be an impact to tariffs on the cost of goods."
AutoZone reported SKU inflation of 1% for the quarter and said it expects to see inflation of 3% over time. The company sources many of its products from China and other East Asian countries, Eastern Europe, and Mexico.
AutoZone CFO Jamere Jackson noted that, other than tariffs, a lot of the drivers of cost increases have come down, particularly freight prices.
"However, if we do see significant tariffs, that will indeed have an inflationary impact," Jackson stated.
Reuters reports:
German carmakers BMW, Mercedes-Benz and Volkswagen are in talks with the U.S. Department of Commerce on a tariff deal that would involve a mechanism to offset imports and exports, the Handelsblatt business daily reported on Wednesday.
In return for tariff relief, the companies could invest billions in the United States, the report said citing company sources. It did not give a more exact sum.
Reuters reports:
Read more here.
Yahoo Finance's senior reporter Hamza Shaban reports on Wall Street's dilemma with Trump's tariffs:
Read more here.
More retailers are feeling the impact of Trump's tariffs as both Macy's (M) and Michael Kors parent company Capri (CAPR) lowered their annual profit and revenue forecasts on Wednesday, citing tariffs as the cause.
Capri cut its revenue forecast for 2026, signaling that tariff-related uncertainty was weighing on demand for its handbags and accessories in North America and Asia.
Macy's followed in a similar fashion: Yahoo Finance senior reporter Brooke DiPalma said the company reaffirmed its sales guidance, but revised its earnings outlook due to uncertainty surrounding tariffs, consumer sentiments, and the competitive landscape.
Macy's is facing multiple macro headwinds as consumer sentiment sags, costs rise with Trump's tariffs, and trends grow toward e-commerce and direct-to-consumer.
Read more here.
Reuters reports:
Read more here.
India has offered steep cuts to its import tariffs on a range of goods in talks with the US, but is said to be retaining high duties on certain agricultural commodities, according to people familiar with the negotiations.
The FT reports:
Read more here.
Reuters reports:
Read more here.
As the US and European Union negotiate a new trade deal to avoid President Trump-imposed tariffs, it's worth taking a moment to note that the US and the EU have the largest bilateral trade relationship in the world.
According to the Council of the European Union (and converted to USD), the transatlantic trade in goods and services topped 1.8 trillion in 2023 after a post-pandemic surge:
A measure of tariff revenue has spiked this month as importers paid the baseline "Liberation Day" tariffs that went into effect on April 5, along with other duties set by President Trump.
Government receipts for "Customs and Certain Excise Taxes" have already topped $22.3 billion this month, according to Treasury Department data.
Yahoo Finance's Ben Werschkul reports:
Read more here.
Yahoo Finance's Jennifer Schonberger reports:
Read more here.
Yahoo Finance's Josh Schafer reports:
Read more here.
The Chinese Premier Li Qiang has urged Southeast Asian and Gulf states to help create a 'big market', in a bid to counter US efforts to isolate China's economy.
Bloomberg News reports:
Read more here.
Reuters reports:
Read more here.
Retailers, who have suffered under Trump's tariffs, are increasingly warming to offers to sell in order to escape market volatility that has caused company valuations to seesaw in recent months, according to a report in Reuters.
Reuters reports:
Read more here.
Bloomberg News reports:
Read more here.
Malaysia's Trade and Industry minister Zafrul Aziz said that the US reducing its proposed tariffs on Malaysia to 10% is a positive move, conceding that a previously hoped for levy of zero may not be possible.
Bloomberg News reports:
Read more here.