US court blocks tariffs imposed by Donald Trump under emergency powers law
A court in the United States on Wednesday blocked tariffs imposed by President Donald Trump on imports into the country under a law that gives him extraordinary powers in emergency situations, reported Reuters.
The New York-based Court of International Trade said that the country's Constitution gave Congress exclusive authority to regulate international commerce, and that the president's emergency powers did not override this.
'The court does not pass upon the wisdom or likely effectiveness of the president's use of tariffs as leverage,' a three-judge panel was quoted as saying by Reuters. 'That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.'
The court passed an injunction blocking all of Trump's tariff-related orders under the International Emergency Economic Powers Act.
The ruling, however, does not halt the tariffs that the president imposed using his powers under Section 232 of the Trade Expansion Act of 1962, reported the Associated Press. Among the tariff measures imposed under this law were a 25% tax imposed on most imported automobiles and on all foreign-made steel and aluminium.
On April 2, the United States announced 'reciprocal' tariffs on dozens of countries, including a 26% 'discounted' levy on India. Trump had repeatedly said he intended to impose a reciprocal tax on India, among others, citing the high tariffs the countries impose on foreign goods.
On April 9, the so-called reciprocal tariffs imposed by the US on several countries took effect. Hours after, however, Trump reduced the tariff rates on imports from most countries to 10% for 90 days to provide time for trade negotiations. However, Washington had increased tariffs on China to 125% at the time.
The US president had cited the 'lack of respect' Beijing had shown to the global markets for further increasing tariffs on imports from China.
On May 12, however, the two countries agreed to suspend tariffs on each other's goods for 90 days. US Treasury Secretary Scott Bessent said that the two countries had agreed that tariffs would come down by more than 100 percentage points to 10%.
In response to Wednesday's order, White House spokesperson Kush Desai said that US trade deficits amounted to a national emergency, reported the Associated Press. He said that the deficits decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
32 minutes ago
- Time of India
As the TACO trade gains popularity, here are multiple occasions when Trump threatened and then backtracked
Trump promised tough tariffs during both his campaigns and in his second term, he's made many threats but followed through on fewer. The constant back-and-forth on tariffs has made businesses uncertain, caused job cuts, delayed investments, and shook the stock market, as per reports. Financial analysts have started calling this behavior TACO trade , meaning 'Trump Always Chickens Out.'When asked about this phrase, Trump got defensive and said, 'It's called negotiation.' This information is from an NBC News report. 10 times Trump threatened tariffs but then backed down 1. European Union Tariffs Trump said on a Friday that he would put 50% tariffs on the E.U. starting June 1 because they weren't serious about trade talks. Two days later, he delayed them until July 9 after speaking with E.U. Commission President Ursula von der Leyen said that on April 2, he first announced 20% tariffs, but later the same day, he lowered them to 10% for 90 days. As per NBC News, E.U. tariffs are still at 10% today. 2. Wine Tariff On March 13, Trump posted he'd slap a 200% tariff on E.U. wine after the E.U. threatened 50% on American whiskey. This back-and-forth never happened. A week later, the E.U. stated that the whiskey tariff would be delayed to give time for discussions. No special wine tariffs were added, only the usual 10% one, as per reports. Live Events 3. Canada and Mexico Tariffs Early in office, Trump said he'd put 25% tariffs on imports from Canada and Mexico due to fentanyl concerns. Canada and Mexico hit back with tariffs, and Canadian citizens boycott U.S. goods. Trump paused the tariffs a day before they were to start, saying both countries were improving border actions. According to the reports, on March 4, he said tariffs were back on, but two days later, paused them again until April 2. When he announced wider global tariffs on April 2, he excluded Canada and Mexico. Today, most goods from both countries have no new tariffs, thanks to the North American trade deal. 4. Tariff on Films On May 4, Trump tweeted he wanted a 100% tariff on all foreign movies. Later that day, the White House said nothing was final, and they were 'exploring options.' By afternoon, Trump said he'd talk to movie industry people to keep them 'happy.' No movie tariffs have been implemented, as per reports. 5. Reciprocal Tariffs As per reports, Trump announced tariffs on almost all countries on 'Liberation Day,' saying they'd range from 10% to 49%. He said this would restart American industry and wealth. But on April 9, the day the tariffs were supposed to begin, he delayed them until July 2 to work on separate trade deals. Meanwhile, he kept a blanket 10% tariff. Only the UK got a draft trade deal. A trade court ruled Trump went too far with these tariffs; the ruling is being appealed. 6. China Tariffs Trump repeatedly accused China of cheating the U.S. and shooting tariffs to over 145% in April. This caused U.S. companies to stop China orders and shipments. Then Trump lowered tariffs to 10% for 90 days to start talks after a meeting between Treasury Sec. Scott Bessent and Chinese officials. A separate 20% tariff on fentanyl ingredients from China stayed. A court ruling this week struck down both tariffs, but they remain during appeals, as stated in the reports. 7. Tariff on iPhones After raising China tariffs, Trump made an exception for iPhones, lowering it to 20%. Last Friday, he said he'd put a 25% tariff on iPhones no matter where they're made, starting at the end of June. Trump wants iPhones to be made in the U.S., but Apple is shifting production to India. As mentioned in the report by NBC News, officials walked it back. Treasury Sec. Bessent said it's more about phone chips than full phones. Kevin Hassett said the move was just a small negotiation tactic and they don't want to 'harm Apple.' 8. Colombia Tariff After Colombia blocked two U.S. military flights carrying migrants on his sixth day back in office, Trump threatened to impose 25% tariffs. Colombia replied with their own 25% tariff, but soon allowed the sides dropped the threats within a day. 9. Tariff on Dolls On May 8, Trump said he'd put a 100% tariff on Mattel toys, even if they stopped making them in China, unless they moved production to the U.S. He said if prices went up, kids in the U.S. would just have fewer dolls. Later, Trump said the U.S. should focus on making high-tech items like chips, computers, tanks, ships, not toys or T-shirts. 10. Auto Tariffs Announcement of a 25% tariff on all foreign-made cars was made by Trump on April 3. A month later, he eased some of those to avoid hurting the U.S.-assembled cars that use foreign parts. He later said cars from the U.K., like Land Rover and Aston Martin, would get just a 10% tariff under a draft U.S.-U.K. trade deal still being negotiated, as per NBC News report. FAQs: Q1. What is TACO trade? TACO trade stands for 'Trump Always Chickens Out,' which refers to Trump's habit of backing down on tariff threats . Q2. How do Trump's tariff threats affect? They cause uncertainty, delay investments, and impact jobs and the stock market.
Time of India
32 minutes ago
- Time of India
US stock market today: Dow edges up but S&P 500 and Nasdaq fall as Trump's China tariff threat hits Apple, Nvidia, Regeneron and Gap—even as inflation cools
US Stock Market Today: S&P 500 and Nasdaq Slip as US-China Tensions Flare Up, Even as Inflation Cools- The stock market today showed mixed signals as Wall Street reacted to fresh concerns over US-China trade tensions while digesting key inflation data. The S&P 500 dropped 0.1%, and the Nasdaq Composite slipped around 0.3%. In contrast, the Dow Jones Industrial Average inched up by 0.1%, showing some resilience. Investors faced two competing stories: cooling inflation pressures and growing uncertainty around tariffs between the world's two biggest economies. President Trump's latest remarks about China 'totally violating its agreement' with the US reignited trade concerns, especially as talks appear to have stalled. Meanwhile, inflation data brought a bit of relief, showing price pressures are starting to ease. Market summary – how the major indexes moved S&P 500: Fell 0.1% Nasdaq Composite: Dropped 0.3% Dow Jones Industrial Average: Rose 0.1% Despite trade concerns, the Dow showed resilience, while tech-heavy indexes slipped slightly amid cautious sentiment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Click Here To Read More - micro segmentation software Expertinspector Click Here Key market drivers 1. Trump's tough talk on China renews trade war fears President Trump accused China of 'totally violating its agreement' with the U.S. Trade talks are reportedly 'a bit stalled,' according to Treasury Secretary Scott Bessent. Tariff tensions are escalating beyond goods to include chip export restrictions and visa issues. A U.S. appeals court paused a lower court ruling that blocked Trump's tariffs—giving the White House until Monday to respond. 2. PCE inflation data shows cooling price pressures Core PCE (month-over-month): +0.1% (unchanged from March, in line with forecasts) Core PCE (year-over-year): +2.5% (down from 2.7% in March) Headline PCE (year-over-year): +2.1% (slightly below the expected 2.2%) Investor sentiment takeaway: Easing inflation could reduce pressure on the Federal Reserve to raise interest rates again. Monthly market performance – is May still ending strong? S&P 500: Up +6% for May Dow Jones: Gained +4% Nasdaq Composite: Surged nearly +10%, led by a tech stock rebound Despite daily volatility, May is closing with solid gains across the board. Live Events Stocks to watch today Regeneron Pharmaceuticals (REGN) Shares plunged over 17% Reason: Disappointing late-stage trial results for its smoker's lung disease drug Despite earlier promising results, the final trial failed to meet expectations, triggering a sharp selloff Other notable movers: Gap (GPS): Fell 17% after a weak Q2 forecast Ulta Beauty (ULTA): Rose 7% after strong Q1 results Dell Technologies (DELL): Up 1.7% on strong revenue beat Consumer sentiment – signs of stabilization University of Michigan's final May reading: Held steady, breaking a 4-month decline streak Positive factor: Temporary China tariff pause boosted economic optimism Inflation expectations Long-run (5-10 years): Dropped to 4.2% (from 4.4% in April) Short-run (1 year): Ticked up to 6.6% (from 6.5%) Why are investors worried about Trump's new China tariff comments? On Friday, President Trump escalated rhetoric against China, accusing Beijing of breaking its deal with the US just weeks after the two nations had agreed on a temporary tariff truce. 'They've totally violated their agreement with us,' Trump told reporters, stoking fears of a renewed US-China trade war. Talks between Washington and Beijing have reportedly hit a roadblock. Scott Bessent told Fox News that discussions are 'a bit stalled,' suggesting only a direct call between Trump and Chinese President Xi Jinping could push things forward. The standoff isn't just about tariffs anymore—it now includes chip restrictions and visa issues, adding layers of complexity to already tense negotiations. Adding to the legal confusion, a US appeals court on Thursday paused a trade court decision that had blocked Trump's global tariffs. The White House now has until Monday to challenge the ruling, which could reshape how tariffs are handled going forward. How is the cooling PCE inflation data affecting market sentiment? While trade headlines dominated attention, the latest PCE inflation report also moved markets. The core Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, rose just 0.1% month-over-month in April. That's the same rate as in March and exactly what economists had forecast. On a yearly basis, core PCE inflation came in at 2.5%, down from March's 2.7%, and matched analyst expectations. Meanwhile, headline PCE rose 2.1% year-over-year, slightly below the 2.2% projection. These numbers suggest that inflation is easing, though still above the Fed's 2% target. The market took this as a positive sign, as it could reduce pressure on the Fed to hike interest rates further. Still, uncertainty from trade tensions has kept investors cautious. Is the stock market still on track for a strong may finish? Despite the choppy session, US stocks remain on pace to close May with solid gains. Here's where the major indexes stand heading into the final trading day of the month: S&P 500: +6% in May Dow Jones: +4% for the month Nasdaq Composite: Nearly +10%, boosted by a tech sector rebound Even with the ups and downs triggered by trade headlines and inflation reports, investors are looking at a winning week and month. The strong performance from tech giants has helped power the Nasdaq's rally, reflecting renewed optimism in growth stocks. What happened to Regeneron stock and why did it fall so sharply? In individual stock news, Regeneron Pharmaceuticals (REGN) took a hard hit on Friday. Shares dropped over 17% after the biotech firm announced mixed trial results for its new drug targeting smoker's lung disease. While the drug failed to show strong results in a late-stage trial, it did perform better in an earlier-stage study. Still, investors were disappointed by the setback, leading to a sharp selloff in the stock during early trading. Is consumer sentiment improving or staying flat? According to the University of Michigan's consumer sentiment survey, confidence among US consumers stabilized in May. The final reading for the month showed sentiment holding steady compared to April, breaking a four-month decline streak. One factor that helped? A temporary pause on certain China tariffs, which boosted optimism about the economy's direction. Joanne Hsu, director of consumer surveys at the university, explained: 'Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement.' In terms of inflation expectations: Long-run inflation outlook fell to 4.2% from 4.4% in April Short-run (1-year) expectations rose slightly to 6.6% from 6.5% While this data shows some relief, Hsu noted that consumers remain concerned. 'These positive changes were offset by declines in current personal finances stemming from stagnating incomes throughout May,' she said. What's next for the stock market and economy? As May wraps up, investors will likely stay focused on US-China developments, especially with Monday's court deadline looming for the White House on tariffs. At the same time, attention will turn to whether the Fed sees enough progress on inflation to hold off on further rate hikes. With solid month-end gains across major indexes and cooling inflation numbers, markets have reasons to stay optimistic—as long as geopolitical tensions don't boil over again. The stock market today reflected a tug-of-war between easing inflation and renewed global trade worries. While Friday was mixed, the broader month paints a more hopeful picture for US equities. FAQs: Q1: What caused the stock market to dip today? Rising US-China tensions and renewed tariff fears made the market slip despite cooling inflation data. Q2: How did PCE inflation data affect investors? The PCE index showed inflation is easing, giving hope the Fed might avoid more rate hikes.
Mint
34 minutes ago
- Mint
IndiaAI Mission gets 16,000 new GPUs, three more foundational models
New Delhi: The Union government on Friday approved the empanelment of 15,640 new graphic processing unit (GPU) processors from data centre and cloud service providers, and also appointed three new startups that will get access to these chips for free, to train their artificial intelligence models. Sanjeev Bikhchandani's Info Edge Ventures-backed AI startup, was one of the three startups appointed to build a sovereign foundational AI model for voice-based AI services. The startup will build a 14-billion parameter voice AI model and real-time speech processing and 'advanced reasoning capabilities.' Foundational AI models are typically better when they are based on larger volumes of training data. But, smaller models are less expensive to train, are more targeted towards specific industries, and are easier to run. The other two startups appointed include Bengaluru-based Sokal AI Labs, and Noida-based Gan AI. While Sokai AI is building a 120-billion parameter foundational AI model catering to defence, education and healthcare sectors, Gan AI will build a 70-billion parameter multilingual foundational model for varied applications. Sovereign AI models refer to foundational algorithms built for usage in generative AI applications, but not by global companies. Sovereign models are typically trained on a nation's indigenous datasets, which theoretically help in adding local market data, language and context to AI applications. The three startups join Peak XV-backed Sarvam AI, which became the first startup appointed by the ministry of electronics and information technology (Meity) to build a foundational AI model for India. Union IT minister Ashwini Vaishnaw said that the first of the four foundational models will be rolled out before the end of 2025. In terms of compute, Hiranandani Group's Yotta Data Services was empanelled by Meity a second time, and will supply over 8,000 units of Nvidia's B200 GPUs to cater to the mission. A senior official with direct knowledge of the matter said requesting anonymity that the GPUs will be brought into service within the next two to three months, as Yotta is still in the process of installing them in its data centres. Sify Digital Services was also a part of the empanelled GPU providers, and will supply an unspecified number of Nvidia's H100, H200 and L4 GPU chips. Access to these GPUs is crucial in terms of training AI models. Ganesh Gopalan, chief executive of told Mint that the government empanelment will reduce the company's operating cost to 'one-tenth of what it was before.' Abhishek Upperwal, chief executive of Soket AI, added that 'over 70%' of the company's cost of research and development, as well as training of AI models, are linked to access to GPUs for computing power. 'This is the least possible cost of compute that we're getting access to. We're in talks with venture capital firms for a seed funding round in order to accelerate our research, and within the next one year, a version of our foundational model should be ready,' Upperwal said. Abhishek Singh, chief executive of India AI Mission and additional secretary, Meity, added that the Centre had received 'more than 500 applications for developing India's foundational models.' 'There will be more startup selections in the next few days. On 9 June, Meity is also meeting applicants to empanel more cloud compute providers, and there will be a rolling empanelment process where vendors will be brought online as and when required,' Singh added. The $1.2-billion IndiaAI Mission is tasked with backing startups to build foundational AI models in India, create a subsidized cloud compute platform to help academia, researchers and startups access GPUs to train AI models, and create datasets in Indian languages to train AI models. It is also set to build a marketplace to help startups developing AI models to sell their services to clients. Access to a foundational model is expected to reduce a nation's dependence on other countries for what is being viewed as a fundamental piece of technology going forward. Entrepreneurs added that the development can amplify market outreach for startups building sovereign AI models. 'The government itself can be a key client. But additionally, reducing the cost of compute can help startups build models more efficiently, which in turn can reduce the need for capital that is the biggest cost factor behind developing AI models and conducting R&D,' Gopalan added. Vaishnaw added that the new announcements mark 'significant progress' under the goals set forth by the IndiaAI Mission. 'We have 367 datasets on the mission's non-personal data platform, AI Kosh. The entire ecosystem is being built right now in AI, and the IT industry should capture this transition as an opportunity, rather than be disrupted by it. AI development is also creating an opportunity to reverse India's brain drain, and bring talented engineers back to the country,' the minister said.
