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The Age
2 days ago
- Business
- The Age
US court blocks Trump's tariffs, rules president exceeded his authority
Companies of all sizes have been whipsawed by the president's swift imposition of tariffs and sudden reversals as they seek to manage supply chains, production, staffing and prices. A White House spokesperson, Kush Desai, said US trade deficits with other countries constituted 'a national emergency that has decimated American communities, left our workers behind, and weakened our defence industrial base – facts that the court did not dispute'. 'It is not for unelected judges to decide how to properly address a national emergency,' Desai said in a statement. Financial markets cheered the ruling. The US dollar rallied following the court's order, surging against currencies such as the euro, yen and the Swiss franc in particular. Wall Street futures rose, along with equities across Asia. The ruling, if it stands, blows a giant hole through Trump's strategy to use steep tariffs to wring concessions from trading partners. It creates deep uncertainty around multiple simultaneous negotiations with the European Union, China and many other countries. However, analysts at Goldman Sachs noted the order does not block sector-specific levies and there were other legal avenues for Trump to impose across-the-board and country-specific tariffs. Loading 'This ruling represents a setback for the administration's tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners,' analyst Alec Phillips wrote in a note. Trump has promised Americans the tariffs would draw manufacturing jobs back to US shores and shrink a $US1.2 trillion ($1.9 trillion) US goods trade deficit, which were among his central campaign promises. Without the instant leverage provided by tariffs, the Trump administration would have to find new forms of leverage or take a slower approach to negotiations with trading partners. The ruling came in a pair of lawsuits, one filed by the non-partisan Liberty Justice Centre on behalf of five small US businesses that import goods from countries targeted by the duties and the other by 13 US states. The companies, which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments, have said the tariffs will hurt their ability to do business. 'There is no question here of narrowly tailored relief; if the challenged tariff orders are unlawful as to plaintiffs, they are unlawful as to all,' the trade court wrote in its decision. At least five other legal challenges to the tariffs are pending. Oregon Attorney-General Dan Rayfield, a Democrat whose office is leading the states' lawsuit, called Trump's tariffs unlawful, reckless and economically devastating. Loading 'This ruling reaffirms that our laws matter, and that trade decisions can't be made on the president's whim,' Rayfield said in a statement. Trump has claimed broad authority to set tariffs under IEEPA, which has historically been used to impose sanctions on enemies of the US or freeze their assets. Trump is the first US president to use it to impose tariffs. The Justice Department has said the lawsuits should be dismissed because the plaintiffs have not been harmed by tariffs that they have not yet paid, and because only Congress, not private businesses, can challenge a national emergency declared by the president under IEEPA. In imposing the tariffs in early April, Trump called the trade deficit a national emergency that justified his 10 per cent across-the-board tariffs on all imports, with higher rates for countries with which the US has the largest trade deficits, particularly China. The country-specific tariff rates were paused for 90 days a week later, though the baseline 10 per cent duty was put in place for most nations. The Trump administration on May 12 said it was also temporarily reducing the steepest tariffs on China while working on a longer-term trade deal. Both countries agreed to cut tariffs on each other for at least 90 days.
Daily Mirror
2 days ago
- Business
- Daily Mirror
Trump explodes over ‘TACO Trade' mockery as court rules on tariff powers
Traders have come up with the acronym TACO, which stands for 'Trump always chickens out,' in reference to the president's habit of threatening to impose tariffs on countries, and then backing off Donald Trump erupted in anger when confronted with a mocking nickname casting doubt on his economics - just hours before a court delivered a major blow to his tariffs. At a White House press briefing, the US leader was asked to comment on his so-called 'TACO Trade' moniker - a label that's gained traction among traders and analysts. The acronym stands for 'Trump Always Chickens Out,' referring to his repeated pattern of threatening massive tariffs on foreign goods only to back down under pressure from markets and businesses. The moment Trump heard the phrase, his mood turned fiery. 'It's called negotiation,' he snapped. 'They wouldn't be over here today negotiating if I didn't put a 50 per cent tariff on European goods. Visibly bristling, he continued: 'They'll say, oh, he was chicken. He was chicken. That's unbelievable. I usually have the opposite problem. They say, 'You're too tough, Mr President.'' The question touched a nerve just as Trump's carefully crafted image as a hard-nosed dealmaker faces mounting challenges, both from Wall Street sceptics and the US legal system. In recent weeks, Trump has walked back two high-profile tariff announcements. On May 12, he placed a 90-day freeze on a planned 145 per cent tariff on Chinese imports. Less than two weeks later, on May 26, he delayed a 50 per cent tariff on European goods until July. In both cases, financial markets rallied sharply after the announcements. The 'TACO Trade' label is now shorthand for what some traders say is a predictable cycle of tariff threats followed by economic panic and then a quiet reversal. But on Wednesday, the blow to Trump's economic policy became more real. The US Court of International Trade ruled that the president overstepped his authority when imposing broad tariffs under the International Emergency Economic Powers Act (IEEPA) - a 1977 law intended to deal with foreign threats. In a sweeping decision, a three-judge panel said Trump's so-called 'Liberation Day' tariffs - the dramatic package of duties introduced last month - were legally invalid. The ruling came in response to two separate lawsuits. One was filed by the Liberty Justice Centre on behalf of small US importers. The other was brought by a coalition of state governments challenging the tariffs as unconstitutional and economically harmful. The court gave the Trump administration ten days to cancel most of the disputed tariffs. Reacting swiftly, a White House spokesperson signalled the administration had appealed, arguing: 'It is not for unelected judges to decide how to properly address a national emergency.' The court's ruling also blocked a separate set of tariffs Trump imposed on imports from China, Mexico, and Canada, which he had claimed were necessary to combat the flow of illegal drugs and immigration. However, the ruling did not address tariffs on specific products such as cars, steel, and aluminium, which were enacted under different statutes and remain in place for now. The legal defeat casts a shadow over a newly brokered trade agreement between the US and the UK, which was announced earlier this month. That deal included reductions or eliminations of tariffs on major British exports to the US, including cars, steel, and aluminium. While those sector-specific deals are still valid, the court decision has raised concerns about a ten per cent blanket tariff on most other UK goods, a key element of the agreement. The UK government has not yet commented on the ruling, but a spokesperson said it remains 'committed to ensuring British businesses can benefit from the deal as quickly as possible.' Analysts say the court's rebuke and the rise of the 'TACO Trade' narrative together represent a turning point in Trump's economic strategy. His 'America First' approach relied heavily on the threat of punitive tariffs to force concessions from global trade partners. But critics now argue that the legal system and financial markets have exposed the limits of that strategy. 'When traders see that tariffs are more bark than bite, it undermines the whole policy,' said one senior analyst. 'The TACO nickname might sound flippant, but it reflects a serious concern that these trade threats are just posturing.' Trump, however, remains defiant. Allies insist the president's tactics have led to meaningful concessions from trading partners and that the court's ruling, if upheld, would weaken America's ability to respond to global economic threats.
The Advertiser
2 days ago
- Business
- The Advertiser
Australia pushes tariffs removal amid US court ruling
Australia will continue to push for the removal of Donald Trump's "unjustified" tariffs following a US court's decision to block the taxes on imported goods from going into effect. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. Trade Minister Don Farrell said the government would study the ruling closely, noting the duties might be subject to further legal proceedings. "The Albanese government has been consistent in the view that these tariffs on Australian imports into the US are unjustified," he said. "We will continue to engage and strongly advocate for the removal of tariffs. "The Albanese government will always stand up for Australia's national interests, including Australian jobs and Australian industries." Australian goods are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US have been slapped with 25 per cent tariffs. Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs. The lawsuit was brought on by the Liberty Justice Centre on behalf of five small US businesses that import goods, and was the first major challenge to the tariffs. The Trump administration immediately lodged an appeal of the decision, saying: "It is not for unelected judges to decide how to properly address a national emergency." The American court ruled the US Constitution gave the Congress exclusive powers to regulate commerce with other countries, which were not overruled by the president's emergency powers to safeguard the economy. As the Trump administration moves to stop Harvard University teaching international students, Australia's ambassador to the US Kevin Rudd has vowed the embassy was working with the US on the impact of the decision on Australians and their families. with Reuters Australia will continue to push for the removal of Donald Trump's "unjustified" tariffs following a US court's decision to block the taxes on imported goods from going into effect. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. Trade Minister Don Farrell said the government would study the ruling closely, noting the duties might be subject to further legal proceedings. "The Albanese government has been consistent in the view that these tariffs on Australian imports into the US are unjustified," he said. "We will continue to engage and strongly advocate for the removal of tariffs. "The Albanese government will always stand up for Australia's national interests, including Australian jobs and Australian industries." Australian goods are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US have been slapped with 25 per cent tariffs. Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs. The lawsuit was brought on by the Liberty Justice Centre on behalf of five small US businesses that import goods, and was the first major challenge to the tariffs. The Trump administration immediately lodged an appeal of the decision, saying: "It is not for unelected judges to decide how to properly address a national emergency." The American court ruled the US Constitution gave the Congress exclusive powers to regulate commerce with other countries, which were not overruled by the president's emergency powers to safeguard the economy. As the Trump administration moves to stop Harvard University teaching international students, Australia's ambassador to the US Kevin Rudd has vowed the embassy was working with the US on the impact of the decision on Australians and their families. with Reuters Australia will continue to push for the removal of Donald Trump's "unjustified" tariffs following a US court's decision to block the taxes on imported goods from going into effect. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. Trade Minister Don Farrell said the government would study the ruling closely, noting the duties might be subject to further legal proceedings. "The Albanese government has been consistent in the view that these tariffs on Australian imports into the US are unjustified," he said. "We will continue to engage and strongly advocate for the removal of tariffs. "The Albanese government will always stand up for Australia's national interests, including Australian jobs and Australian industries." Australian goods are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US have been slapped with 25 per cent tariffs. Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs. The lawsuit was brought on by the Liberty Justice Centre on behalf of five small US businesses that import goods, and was the first major challenge to the tariffs. The Trump administration immediately lodged an appeal of the decision, saying: "It is not for unelected judges to decide how to properly address a national emergency." The American court ruled the US Constitution gave the Congress exclusive powers to regulate commerce with other countries, which were not overruled by the president's emergency powers to safeguard the economy. As the Trump administration moves to stop Harvard University teaching international students, Australia's ambassador to the US Kevin Rudd has vowed the embassy was working with the US on the impact of the decision on Australians and their families. with Reuters Australia will continue to push for the removal of Donald Trump's "unjustified" tariffs following a US court's decision to block the taxes on imported goods from going into effect. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. Trade Minister Don Farrell said the government would study the ruling closely, noting the duties might be subject to further legal proceedings. "The Albanese government has been consistent in the view that these tariffs on Australian imports into the US are unjustified," he said. "We will continue to engage and strongly advocate for the removal of tariffs. "The Albanese government will always stand up for Australia's national interests, including Australian jobs and Australian industries." Australian goods are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US have been slapped with 25 per cent tariffs. Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs. The lawsuit was brought on by the Liberty Justice Centre on behalf of five small US businesses that import goods, and was the first major challenge to the tariffs. The Trump administration immediately lodged an appeal of the decision, saying: "It is not for unelected judges to decide how to properly address a national emergency." The American court ruled the US Constitution gave the Congress exclusive powers to regulate commerce with other countries, which were not overruled by the president's emergency powers to safeguard the economy. As the Trump administration moves to stop Harvard University teaching international students, Australia's ambassador to the US Kevin Rudd has vowed the embassy was working with the US on the impact of the decision on Australians and their families. with Reuters
West Australian
2 days ago
- Business
- West Australian
Australia pushes tariffs removal amid US court ruling
Australia will continue to push for the removal of Donald Trump's "unjustified" tariffs following a US court's decision to block the taxes on imported goods from going into effect. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. Trade Minister Don Farrell said the government would study the ruling closely, noting the duties might be subject to further legal proceedings. "The Albanese government has been consistent in the view that these tariffs on Australian imports into the US are unjustified," he said. "We will continue to engage and strongly advocate for the removal of tariffs. "The Albanese government will always stand up for Australia's national interests, including Australian jobs and Australian industries." Australian goods are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US have been slapped with 25 per cent tariffs. Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs. The lawsuit was brought on by the Liberty Justice Centre on behalf of five small US businesses that import goods, and was the first major challenge to the tariffs. The Trump administration immediately lodged an appeal of the decision, saying: "It is not for unelected judges to decide how to properly address a national emergency." The American court ruled the US Constitution gave the Congress exclusive powers to regulate commerce with other countries, which were not overruled by the president's emergency powers to safeguard the economy. As the Trump administration moves to stop Harvard University teaching international students, Australia's ambassador to the US Kevin Rudd has vowed the embassy was working with the US on the impact of the decision on Australians and their families. with Reuters
Perth Now
2 days ago
- Business
- Perth Now
Australia pushes tariffs removal amid US court ruling
Australia will continue to push for the removal of Donald Trump's "unjustified" tariffs following a US court's decision to block the taxes on imported goods from going into effect. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. Trade Minister Don Farrell said the government would study the ruling closely, noting the duties might be subject to further legal proceedings. "The Albanese government has been consistent in the view that these tariffs on Australian imports into the US are unjustified," he said. "We will continue to engage and strongly advocate for the removal of tariffs. "The Albanese government will always stand up for Australia's national interests, including Australian jobs and Australian industries." Australian goods are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US have been slapped with 25 per cent tariffs. Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs. The lawsuit was brought on by the Liberty Justice Centre on behalf of five small US businesses that import goods, and was the first major challenge to the tariffs. The Trump administration immediately lodged an appeal of the decision, saying: "It is not for unelected judges to decide how to properly address a national emergency." The American court ruled the US Constitution gave the Congress exclusive powers to regulate commerce with other countries, which were not overruled by the president's emergency powers to safeguard the economy. As the Trump administration moves to stop Harvard University teaching international students, Australia's ambassador to the US Kevin Rudd has vowed the embassy was working with the US on the impact of the decision on Australians and their families. with Reuters
