Trump administration's tariff powers face backlash in US court of appeals
Circuit judge Jimmy Reyna said that the "IEEPA doesn't even mention the word tariff anywhere. He stated the same as a sign of non-belief towards arguments posited by a government attorney as reported by Associated Press. The attorney representing the Trump administration, Brett Schumate, acknowledged in the 99-minute hearing 'no president has ever read IEEPA this way' but posited a contention that it was nonetheless lawful.The appellate judges questioned that contention with Schumate, asking whether the law extended to the domain of tariffs at all and, if it did so, whether the levies matched the threat the administration recognised.'If the president says there's a problem with our military readiness,' Chief Circuit Judge Kimberly Moore posited, 'and he puts a 20% tax on coffee, that doesn't seem to necessarily deal with it.'Schumate defended his stance by stating that the Congress' passage of IEEPA gave the president a power which is 'broad and flexible" to respond to an emergency, but that 'the president is not asking for unbounded authority.'ALL ABOUT THE LAWThe 1977 law, signed by former President Jimmy Carter grants the president the power to size assets and enable a blockage of transactions during the period of a national emergency. The law was first exercised during the Iran hostage crisis and has since been invoked for a range of global unrest, from the 9/11 attacks to the Syrian civil war.To this, Trump has reportedly mentioned that the country's trade deficit is so serious that it qualifies for the protection of the law.An attorney for the plaintiffs, Neal Katyal, characterised Trump's manoeuvre as a 'breathtaking' power grab that amounted to saying 'the president can do whatever he wants, whenever he wants, for as long as he wants so long as he declares an emergency.'No ruling was issued by the bench. Regardless of what decision the judges' deliberations bring, the case is widely expected to reach the U.S. Supreme Court.Trump weighed in on the case on his Truth Social platform, posting: "To all of my great lawyers who have fought so hard to save our Country, good luck in America's big case today. If our Country was not able to protect itself by using TARIFFS AGAINST TARIFFS, WE WOULD BE 'DEAD,' WITH NO CHANCE OF SURVIVAL OR SUCCESS. Thank you for your attention to this matter!''
Trump's comments on the ongoing case
In the ongoing case, the Trump administration asserts that 'a national emergency exists' necessitating its current course of trade policy. A three-judge panel of the US Court of International Trade, a specialised federal court in New York, was unconvinced, however, and ruled on the 28th of May that Trump had exceeded his powers of authority.The issue now rests with the appeals judges. The challenge strikes at just one batch of import taxes from an administration that has unleashed a bevy of them and could be poised to unveil more on Friday.CASE HISTORY AND TARIFFS The case centres on Trump's so-called Liberation Day tariffs of April 2 that imposed new levies on nearly every country. But it doesn't cover other tariffs, including those on auto, aluminium and foreign steel nor ones imposed on China during Trump's first term, and continued by President Joe Biden.advertisementThe case is one of at least seven lawsuits charging that Trump overexercised his authority through the use of tariffs on other countries. The plaintiffs include 12 US states and five businesses, including a wine importer, a company selling pipes and plumbing goods, and a maker of fishing gear.The US Constitution gives the Congress the authority to impose taxes which are inclusive of tariffs, but over decades lawmakers have ceded power over trade policy to the White House. As per the Budget lab at Yale University, Trump has capitalised on the power vacuum, increasing the average U.S. tariff to over 18%, the highest level since 1934.- EndsWith inputs from AP Tune InMust Watch
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
7 minutes ago
- Business Standard
'Let them sail': Russian lawmaker shrugs off Trump's nuclear sub threat
A senior Russian lawmaker has said that Russia has enough nuclear submarines at sea to handle any potential threat from the two US subs ordered into position by President Donald Trump, news agency PTI reported. Viktor Vodolatsky, a member of the Russian Parliament (Duma), told state news agency TASS that there is no need for a response from Russia to Trump's decision. "The number of Russian nuclear submarines in the world's oceans is significantly higher than the American ones, and the subs that US President Donald Trump ordered to be redirected to the appropriate regions have long been under their control,' he said. 'So no response from the Russian Federation to the American leader's statement about the submarines is required." Vodolatsky also said: 'Let the two US subs sail, they have been in the crosshairs for a long time now.' Trump orders US nuclear submarines on alert On Friday, Trump posted on his social media platform Truth Social that he had ordered the movement of two US nuclear submarines to 'appropriate regions'. He said the decision was in response to what he described as 'extremely provocative statements' made by former Russian President Dmitry Medvedev, now the deputy chairman of the Russian Security Council. In his post, Trump wrote: 'Based on the highly provocative statements of the Former President of Russia, Dmitry Medvedev... I have ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that." Russian minister backs peaceful approach, warns against direct conflict Responding to comments made by US Secretary of State Marco Rubio in a Fox News interview, Russian Foreign Minister Sergei Lavrov welcomed the US position that a direct military clash with Russia must be avoided. 'We wholeheartedly concur with this position. Such shared understanding has been facilitated through constructive Russian-American dialogue,' Lavrov said. 'While Europeans are hysterically pushing for Ukraine's integration into NATO... Marco Rubio recently reaffirmed a responsible stance, explicitly stating that a direct military confrontation between the United States and Russia must be avoided," he said. Trump slams Medvedev, India and Russia In another post on Thursday, Trump attacked both India and Russia, calling them 'dead economies' and suggesting they could 'take their dead economies down together'. He also criticised Medvedev. 'Russia and the USA do almost no business together. Let's keep it that way. Tell Medvedev, the failed former President of Russia, who thinks he's still President, to watch his words. He's entering very dangerous territory!' Trump said. In response, Medvedev dismissed Trump's remarks, saying they showed nervousness. 'If some words from the former president of Russia cause such a nervous reaction from the supposedly mighty president of the US, then Russia is doing everything right,' he wrote on Telegram. He also reminded Trump of Russia's Cold War-era nuclear capability, designed to retaliate even if the country's leadership were destroyed in a first strike. Mocking Trump's interest in pop culture, Medvedev added: 'He should remember his favourite films about 'The Walking Dead' and think about how dangerous a 'dead hand' can be, even one that doesn't exist in nature,' ending his post with a laughing emoji. (With agency inputs)
Mint
7 minutes ago
- Mint
Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 4 August 2025
Buy or sell stocks: Following weak global cues after Trump's tariff bombshell on Thursday night, the Indian stock market ended lower on Friday. The Nifty 50 index finished southward for the fifth successive week, its prolonged losing streak since the week ending August 25, 2023. This selling was across segments, as the BSE Sensex and the Bank Nifty index witnessed selling pressure in the previous week, while the small-cap and mid-cap indices ended more than 2% lower last week. Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market is trading cautiously after the US administration's imposition of a 25% tariff. The Choice Broking expert said the Nifty 50 index is in the 24,500 to 24,950 range. A bullish or bearish trend can be assumed on the breakage of either side of this range. Speaking on the outlook of the Nifty 50 index, Sumeet Bagadia said, "The Indian stock market sentiment is cautious as the Nifty 50 index is trading in the 24,500 to 24,850 range. The key benchmark index has crucial support placed at 24,500, whereas it is facing resistance at the 50-DEMA of 24,900 to 24,950. A bullish or bearish trend can be assimilated on the breakage of either side of this range." The Choice Broking expert suggested investors look at stocks that look strong on the technical chart and recommended buying ITC, Asian Paints, and Metropolis Healthcare next week. 1] ITC: Buy at ₹ 416.45, Target ₹ 450, Stop Loss ₹ 400. ITC's share price is currently trading at ₹ 416.45 and has witnessed a decline of nearly 22% from its recent highs, followed by a prolonged consolidation phase. The stock has recently formed a Falling Wedge pattern on the daily chart—typically a bullish reversal setup that indicates a potential breakout on the upside. ITC's share price now appears to be on the verge of breaking out of this formation, supported by consistent trading volumes that reflect steady accumulation at lower levels. A sustained move above the ₹ 425 mark would confirm the breakout, potentially triggering a trend reversal and opening up room for a move toward higher price levels. This breakout would also signal a shift in sentiment from consolidation to strength. From a momentum perspective, the Relative Strength Index (RSI) stands at 51.31 and has recently given a positive crossover, moving upward and suggesting improving bullish momentum. Technically, the stock is hovering between its short-term and medium-term EMAs. A successful hold above these levels, followed by a sustained move above the long-term EMA, would further strengthen the bullish outlook. Given the encouraging technical pattern, steady volumes, and improving momentum, traders may consider buying ITC shares at the current market price of ₹ 416.45, with a stop-loss at ₹ 400 to limit downside risk. A breakout above ₹ 425 could pave the way for an upside toward ₹ 450 in the short to medium term, offering a favourable risk-reward opportunity. 2] Asian Paints: Buy at ₹ 2431, Target ₹ 2650, Stop Loss ₹ 2320. Asian Paints' share trades at ₹ 2,431 and moves within a broad consolidation range near its lower levels. This extended consolidation phase, supported by steady trading volumes, indicates accumulation and growing investor interest at these price zones. The stock has recently shown signs of recovery, bouncing from its short-term and medium-term exponential moving averages (EMAs). While it has attempted to cross above its long-term EMA, it has yet to sustain a close above that level—making a decisive breakout above it crucial for further strength. A sustained move above the ₹ 2,500 level could confirm bullish momentum, potentially triggering a fresh upward leg in the price action. This breakout would signify the end of the current range-bound behaviour and open the door for further gains toward higher levels. From a momentum perspective, the Relative Strength Index (RSI) stands at 59.29 and has recently given a positive crossover, trending upward. This suggests strengthening momentum and increasing bullish sentiment, further supported by price action holding above key EMAs. Given the constructive chart structure, improving RSI, and substantial volume support, traders may consider buying Asian Paints shares at ₹ 2,431, with a stop-loss placed at ₹ 2,320 to manage downside risk. A sustained breakout above ₹ 2,500 could lead to an upside toward ₹ 2,650 in the short to medium term, offering an attractive risk-reward setup for positional traders. 3] Metropolis Healthcare: Buy at ₹ 2037.70, Target ₹ 2260, Stop Loss ₹ 1925. Metropolis Healthcare's share price is currently trading at ₹ 2,037.70 and has shown signs of strength after a corrective move from its recent swing high. Following the decline, the stock entered a consolidation phase and witnessed a strong bounce from its demand zone, indicating renewed buying interest at lower levels. Metropolis Healthcare's share price on the daily chart is forming a Cup & Handle pattern. This bullish continuation formation typically signals the potential for further upward movement once the breakout is confirmed. A recent spike in trading volumes further validates the accumulation during the handle formation, indicating strong participation. A sustained move above ₹ 2,100 would confirm the breakout from this bullish setup and could trigger a fresh upward rally, resuming the stock's prior uptrend. From a momentum standpoint, the Relative Strength Index (RSI) is at 63.54 and has given a positive crossover, suggesting strong bullish sentiment and further upside potential. Additionally, the stock has retraced towards its short-term EMA and is now comfortably trading above all key moving averages—short-term, medium-term, and long-term—reinforcing the positive outlook. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
7 minutes ago
- Economic Times
Trump's 25% Tariff on Indian Exports: A headline risk, not a structural threat
Exports to the U.S. account for just around 2% of India's GDP. Jimeet Modi says Trump's proposed 25% tariff on Indian exports is a headline risk, not a structural threat. With strong domestic demand, diversified trade, and policy support, India's economy and capital markets are well-positioned to absorb such external shocks without long-term disruption. Tired of too many ads? Remove Ads Sectoral Impact: Short-Term, Not Structural Tired of too many ads? Remove Ads A Reality Check: The Numbers Tell the Story Strategic Positioning & Policy Backstop Tired of too many ads? Remove Ads Implications for the Capital Market Conclusion (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) The recent announcement by U.S. President Donald Trump of a proposed 25% tariff on select Indian exports has understandably stirred concerns among market participants tracking India's capital markets. While the headlines may sound alarming, it's important to put this development into perspective and assess its true economic me begin by stating clearly: this is not a significant threat to India's economic engine or its long-term investment there could be short-term headwinds for specific export-intensive sectors—particularly engineering goods, pharmaceuticals, auto components, textiles, and select metals and chemicals. These industries may face margin compression, supply chain friction, and temporary stock price the broader foundation of the Indian economy remains intact and resilient.*India's nominal GDP has crossed USD 4 trillion, positioning it as the fifth-largest economy in the world.*In FY 2024–25, India recorded total exports of USD 824.9 billion, which includes both goods and services. This constitutes roughly 20% of GDP, meaning that 80% of GDP is driven by domestic demand—a testament to India's robust internal economic activity.*Of the total goods exports, shipments to the U.S. stood at USD 87.4 billion, while imports from the U.S. were USD 41.8 billion.*Thus, exports to the U.S. account for just around 2% of India's GDP. Even if a subset of these is impacted by the tariffs, the macroeconomic fallout remains limited.*It's also worth noting that key growth sectors like IT services, digital exports, mobile phones, agri-tech, and clean energy remain largely untouched by these proposed tariff external trade diversification is another buffer. Exporters are actively expanding into markets across the Middle East, Africa, Southeast Asia, and Latin America, reducing over-reliance on Western diplomatic engagement continues. The 6th round of U.S.-India trade talks is scheduled for August 2025, and historical precedent suggests a realistic possibility of a rollback or sector-specific reprieve—as seen during earlier interactions with the Trump refusal to open its agriculture and dairy markets reflects a confident and principled trade stance. This underscores India's emergence as a credible global economic initiatives like Atmanirbhar Bharat, PLI schemes, infrastructure investments, and digital transformation are significantly boosting India's manufacturing competitiveness and supply chain independence. These initiatives act as policy cushions against external should differentiate between sentiment-driven volatility and long-term structural some export-led stocks may experience corrections in the near term, India's broader market indices remain supported by:*Robust domestic consumption*Stable macroeconomic indicators*Healthy credit growthMoreover, foreign portfolio investments (FPIs) continue to flow into domestic-facing sectors like financials, infrastructure, consumption, and energy transition, reaffirming global investor confidence in India's long-term proposed U.S. tariff is a tactical disruption, not a strategic derailment. With:*Low GDP exposure to impacted goods*Policy preparedness*Expanding trade partnerships, and*Strong domestic demandIndia is well-equipped to weather such external should view this episode as a short-term sentiment overhang—not a fundamental threat. The Indian growth story remains robust, broad-based, and attractively poised for the long term.
