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Yomiuri Shimbun
5 hours ago
- Business
- Yomiuri Shimbun
U.S. Tariffs Blocked: Can Judiciary Prevent The President from Abusing Power?
Whether the principle of checks and balances, which has been in place since the founding of the United States to prevent a president from abusing their power, still functions properly is being tested. The tariff policy of the administration of U.S. President Donald Trump has created a situation in which the future of U.S. democracy is in question. The U.S. Court of International Trade ruled that the Trump administration's 'reciprocal tariffs' imposed on countries and regions around the world and other measures are illegal and invalid and ordered a permanent injunction. The ruling said the Constitution in principle gives Congress the power to lay and collect taxes and other such matters. As to the International Emergency Economic Powers Act (IEEPA), which the administration cited as grounds for imposing Trump's tariffs, the court argued the law does not confer on the president such unbound authority. The U.S. Court of Appeals for the Federal Circuit, which serves as the court of second instance, suspended the enforcement of the lower court ruling, and a thorough review of the appropriateness of the tariffs will be carried out. The case will likely be brought to the Supreme Court. Although the tariffs issue will likely see a lot of twists and turns, there is no doubt that this ruling has dealt a blow to the Trump administration's signature policy. The lawsuit was filed by small and medium-sized U.S. companies and 12 states, including New York and Arizona. This shows that dissatisfaction with the tariff policy is growing not only overseas but also within the United States. Shouldn't Trump face the criticism head-on and reconsider the tariff policy? In the United States, authority over tariffs and trade is primarily vested in Congress, while certain powers are delegated to the president through various laws. The IEEPA was enacted in 1977. In cases in which there is an 'unusual and extraordinary threat' to national security, foreign policy or the economy of the United States, the president can impose restrictions on imports and exports without prior examination after declaring a state of national emergency. Previously, the IEEPA has been mainly applied to economic sanctions against countries such as North Korea and Iran. The Trump administration was the first to impose tariffs under the law. The administration argues that the massive trade deficit poses a threat to national security. However, as the latest ruling shows, doubts about the validity of such an argument for the tariffs remain strong. Since its founding, the United States has thoroughly upheld the separation of powers among the judicial, legislative and executive branches as the foundation of democracy. This system in which the three powers keep each other in check has prevented the emergence of authoritarian rule and protected the freedom and rights of the people. However, with both the House of Representatives and the Senate being controlled by the Republican Party, which has become increasingly Trump's party, the checks and balances are not functioning as they should. Amid growing concerns over Trump abusing his power, the ruling demonstrates that the judiciary can serve as a check on that power to a certain degree. If the court ultimately rules that the reciprocal tariffs are illegal, they will lose their efficacy. This could also influence the negotiation strategies of other countries. The Japanese government must carefully analyze the details of the ruling and future developments. (From The Yomiuri Shimbun, May 31, 2025)
Irish Independent
7 hours ago
- Business
- Irish Independent
The Irish Independent's View: Donald Trump's tariff woes may turn into Europe's golden opportunity
Were he to do so, a quote from Julius Caesar about 'a tide in the affairs of man' and how 'we must take the current when it serves, Or lose our ventures' seems pertinent. Portentous events within the US courts, and in his own political circle, should give pause for thought. The ruling putting a brake on his 'Liberation Day' tariff wall is a setback, no matter what Republicans say. The sudden departure of the world's richest man, Elon Musk, from his court of invincibles has suddenly introduced a sense of vulnerability to the administration. Insiders played down the implications of the tariffs block being turned around on appeal. 'If anybody thinks this caught the administration by surprise, think again,' trade adviser Peter Navarro said. But the timing is fortuitous, to say the least, for the EU, as it goes eyeball to eyeball in a crucial stage of crunch trade talks with Trump. Brussels is in a desperate race to avoid a 50pc general tariff that the president threatened. However, a 'very nice' call with European Commission president Ursula von der Leyen has secured a stay on this until July 9. The finding by the US Court of International Trade that the president had exceeded his authority in invoking the International Emergency Economic Powers Act as a basis for imposing draconian levies is a blow. ADVERTISEMENT Analysts feel the impact may be limited for the trade talks, given the other tariff options available. However, the court's insistence that the US constitution confers on Congress exclusive powers to regulate commerce with other nations, and therefore could not be over-ridden by the president, may embolden countries to hold out, at the very least, until there is greater clarity. As noted by Letitia James, the attorney general of New York, one of 12 states involved in the lawsuit: 'The law is clear: no president has the power to single-handedly raise taxes whenever they like.' The tariffs saga is likely to have many more twists and turns, as illustrated by the US federal appeals court decision last night to temporarily reinstate the tariffs. Trump has bristled at the latest 'Taco' label he has been tagged with (Trump always chickens out) when the markets put the heat on, but there is enough truth in it to encourage some to be defiant. Brussels has been given another card to play, and it would be naive not to. Kowtowing can only result in more volatility as Trump will surely up the ante. If the bloc is to be taken seriously as a player on the world stage, it must flex some financial muscle. The departure of Elon Musk also suggests there may be some blood in the water. Quitting only a day after slamming Trump's landmark 'big beautiful bill' for undermining spending cuts suggests division in the ranks. Trump's difficulty could be the EU's opportunity.
The Star
7 hours ago
- Business
- The Star
Trump versus the gavel: Tariffs temporarily reinstated
US President Donald Trump. — Reuters THE courts have become the main nemesis to President Donald Trump's Make America Great Again reset plan. The move by the US Court of International Trade this week to block Trump's 'Liberation Day' tariffs, implemented under the International Emergency Economic Powers Act, marks the latest tussle between the president and the judicial branch of government.
The Sun
8 hours ago
- Business
- The Sun
Bursa Malaysia likely to see volatile trading next week pending key market developments
KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade within a volatile range of 1,500 to 1,530 next week, pending the emergence of new market-moving developments. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market sentiment will remain subdued, with investors maintaining a wait-and-see approach. 'From a technical standpoint, the FBM KLCI is in a correction phase, trading below its key moving averages, with technical indicators pointing to short-term weakness. 'Nonetheless, there are signs that the index may be positioning for a recovery, particularly if macroeconomic pressures subside and regional sentiment improves,' he told Bernama. Thong said a clear break above the 1,535 level could confirm a shift towards bullish momentum. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI is expected to trade in a narrow range in the absence of clear catalysts. 'Should the index fall below the 1,500 level, bargain hunting may emerge — especially in undervalued large-cap names. 'Volatility may also increase due to several external triggers. South Korea's presidential election on Tuesday could influence regional sentiment, while investors will be closely monitoring a series of economic data releases from China, Japan, South Korea, Taiwan, and Malaysia — including updates on exports, inflation, and purchasing managers' indices,' he said. Mohd Sedek noted that Bursa Malaysia will see a shortened four-day trading week next week, due to the long weekend, which could lead to thinner trading volumes and heightened market volatility. 'Investors should remain vigilant, maintain diversified portfolios, and be prepared for intermittent of volatility as uncertainty continues to shape the investment landscape,' he added. Mohd Sedek said a US appeals court has stayed a prior ruling that had blocked President Donald Trump's use of reciprocal tariffs under the 1977 International Emergency Economic Powers Act, raising fresh questions about the future direction of US trade enforcement. Bursa Malaysia Bhd and its subsidiaries will be closed on June 2, 2025, in conjunction with the official birthday of His Majesty Sultan Ibrahim, King of Malaysia. The exchange and its subsidiaries will resume operations on Tuesday, June 3, 2025. For the week just ended, Bursa Malaysia retreated from earlier gains and ended lower on Friday weighed down by continued selling pressure in heavyweight and mid-cap stocks amid downbeat regional sentiment, following the uncertainty surrounding US trade policy. On a Friday-to-Friday basis, the barometer index fell 27.03 points to 1,508.35 from 1,535.38 a week earlier. The FBM Emas Index dipped 174.25 points to 11,299.80, the FBMT 100 Index slipped 172.10 points to 11,061.00, and the FBM Emas Shariah Index declined 169.96 points to 11,256.26. The FBM 70 Index lost 148.75 points to 16,201.51, and the FBM ACE Index fell 64.91 points to 4,551.03. Across sectors, the Financial Services Index tumbled 262.04 points to 17,840.54, the Industrial Products and Services Index was 1.39 points easier at 152.65, and the Energy Index shed 2.73 points to 708.04. The Plantation Index shrank 122.46 points to 7,207.85 and the Healthcare Index dropped 16.94 points to 1,816.95. Turnover advanced to 14.80 billion units valued at RM12.78 billion from 14.05 billion units valued at RM11.28 billion in the preceding week. The Main Market volume improved to 7.21 billion units worth RM11.50 billion against 7.14 billion units worth RM10.06 billion. Warrants turnover expanded to 5.90 billion units worth RM721.75 million against 5.13 billion units worth RM645.54 million a week ago. The ACE Market volume narrowed to 1.66 billion units valued at RM543.90 million from 1.78 billion units valued at RM563.52 million.
The Sun
8 hours ago
- Business
- The Sun
FBM KLCI to trade between 1,500 -1,530 amid uncertainty
KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade within a volatile range of 1,500 to 1,530 next week, pending the emergence of new market-moving developments. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market sentiment will remain subdued, with investors maintaining a wait-and-see approach. 'From a technical standpoint, the FBM KLCI is in a correction phase, trading below its key moving averages, with technical indicators pointing to short-term weakness. 'Nonetheless, there are signs that the index may be positioning for a recovery, particularly if macroeconomic pressures subside and regional sentiment improves,' he told Bernama. Thong said a clear break above the 1,535 level could confirm a shift towards bullish momentum. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI is expected to trade in a narrow range in the absence of clear catalysts. 'Should the index fall below the 1,500 level, bargain hunting may emerge — especially in undervalued large-cap names. 'Volatility may also increase due to several external triggers. South Korea's presidential election on Tuesday could influence regional sentiment, while investors will be closely monitoring a series of economic data releases from China, Japan, South Korea, Taiwan, and Malaysia — including updates on exports, inflation, and purchasing managers' indices,' he said. Mohd Sedek noted that Bursa Malaysia will see a shortened four-day trading week next week, due to the long weekend, which could lead to thinner trading volumes and heightened market volatility. 'Investors should remain vigilant, maintain diversified portfolios, and be prepared for intermittent of volatility as uncertainty continues to shape the investment landscape,' he added. Mohd Sedek said a US appeals court has stayed a prior ruling that had blocked President Donald Trump's use of reciprocal tariffs under the 1977 International Emergency Economic Powers Act, raising fresh questions about the future direction of US trade enforcement. Bursa Malaysia Bhd and its subsidiaries will be closed on June 2, 2025, in conjunction with the official birthday of His Majesty Sultan Ibrahim, King of Malaysia. The exchange and its subsidiaries will resume operations on Tuesday, June 3, 2025. For the week just ended, Bursa Malaysia retreated from earlier gains and ended lower on Friday weighed down by continued selling pressure in heavyweight and mid-cap stocks amid downbeat regional sentiment, following the uncertainty surrounding US trade policy. On a Friday-to-Friday basis, the barometer index fell 27.03 points to 1,508.35 from 1,535.38 a week earlier. The FBM Emas Index dipped 174.25 points to 11,299.80, the FBMT 100 Index slipped 172.10 points to 11,061.00, and the FBM Emas Shariah Index declined 169.96 points to 11,256.26. The FBM 70 Index lost 148.75 points to 16,201.51, and the FBM ACE Index fell 64.91 points to 4,551.03. Across sectors, the Financial Services Index tumbled 262.04 points to 17,840.54, the Industrial Products and Services Index was 1.39 points easier at 152.65, and the Energy Index shed 2.73 points to 708.04. The Plantation Index shrank 122.46 points to 7,207.85 and the Healthcare Index dropped 16.94 points to 1,816.95. Turnover advanced to 14.80 billion units valued at RM12.78 billion from 14.05 billion units valued at RM11.28 billion in the preceding week. The Main Market volume improved to 7.21 billion units worth RM11.50 billion against 7.14 billion units worth RM10.06 billion. Warrants turnover expanded to 5.90 billion units worth RM721.75 million against 5.13 billion units worth RM645.54 million a week ago. The ACE Market volume narrowed to 1.66 billion units valued at RM543.90 million from 1.78 billion units valued at RM563.52 million.
