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Euronews
5 days ago
- Business
- Euronews
Federal court blocks Donald Trump from imposing sweeping tariffs
The ruling from a three-judge panel at the New York-based US Court of International Trade came after several lawsuits arguing Trump's 'Liberation Day' tariffs exceeded his authority and left the country's trade policy dependent on his whims. Trump has repeatedly said the tariffs would force manufacturers to bring back factory jobs to the US and generate enough revenue to reduce federal budget deficits. He used the tariffs as a negotiating cudgel in hopes of forcing other nations to negotiate agreements that favoured the US, suggesting he would simply set the rates himself if the terms were unsatisfactory. White House spokesperson Kush Desai said that trade deficits amount to a national emergency 'that has decimated American communities, left our workers behind, and weakened our defense industrial base — facts that the court did not dispute.' The administration, he said, remains 'committed to using every lever of executive power to address this crisis and restore American Greatness.' But for now, Trump might not have the threat of import taxes to exact his will on the world economy as he had intended, since doing so would require congressional approval. What remains unclear is whether the White House will respond to the ruling by pausing all of its emergency power tariffs in the interim. Trump might still be able to temporarily launch import taxes of 15% for 150 days on nations with which the US runs a substantial trade deficit. The ruling notes that a president has this authority under Section 122 of the Trade Act of 1974. The ruling amounted to a categorical rejection of the legal underpinnings of some of Trump's signature and most controversial actions of his four-month-old second term. The administration swiftly filed notice of appeal — and the Supreme Court will almost certainly be called upon to lend a final answer — but it casts a sharp blow. The case was heard by three judges: Timothy Reif, who was appointed by Trump, Jane Restani, named to the bench by President Ronald Reagan and Gary Katzman, an appointee of President Barack Obama. 'The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,' the court wrote, referring to the 1977 International Emergency Economic Powers Act. The ruling left in place any tariffs that Trump put in place using his Section 232 powers from the Trade Expansion Act of 1962. He put a 25% tax on most imported autos and parts, as well as on all foreign-made steel and aluminum. Those tariffs depend on a Commerce Department investigation that reveals national security risks from imported products. It was filed in the US Court of International Trade, a federal court that deals specifically with civil lawsuits involving international trade law. While tariffs must typically be approved by Congress, Trump has said he has the power to act to address the trade deficits he calls a national emergency. He is facing at least seven lawsuits challenging the levies. The plaintiffs argued that the emergency powers law does not authorize the use of tariffs, and even if it did, the trade deficit is not an emergency because the U.S. has run a trade deficit with the rest of the world for 49 consecutive years. Trump imposed tariffs on most of the countries in the world in an effort to reverse America's massive and long-standing trade deficits. He earlier plastered levies on imports from Canada, China and Mexico to combat the illegal flow of immigrants and the synthetic opioids across the U.S. border. His administration argues that courts approved then-President Richard Nixon's emergency use of tariffs in 1971, and that only Congress, and not the courts, can determine the 'political' question of whether the president's rationale for declaring an emergency complies with the law. Trump's Liberation Day tariffs shook global financial markets and led many economists to downgrade the outlook for US economic growth. So far, though, the tariffs appear to have had little impact on the world's largest economy. The lawsuit was filed by a group of small businesses, including a wine importer, V.O.S. Selections, whose owner has said the tariffs are having a major impact and his company may not survive. A dozen states also filed suit, led by Oregon. 'This ruling reaffirms that our laws matter, and that trade decisions can't be made on the president's whim,' Attorney General Dan Rayfield said. Oregon Sen. Ron Wyden, top Democrat on the Senate Finance Committee, said the tariffs had "jacked up prices on groceries and cars, threatened shortages of essential goods and wrecked supply chains for American businesses large and small.″
Business Times
26-05-2025
- Business
- Business Times
India's central bank seeks approval for overseas rupee lending: sources
[NEW DELHI] India's central bank is taking another step to internationalise the rupee, seeking approval to allow domestic banks to lend the currency to overseas borrowers for the first time, two sources said. The Reserve Bank of India (RBI) has asked the federal government to allow domestic banks and their foreign branches to lend Indian rupees to overseas borrowers to enhance the use and acceptability of the local currency in trade. The proposal, which was sent to the finance ministry last month, suggests lending in rupees to non-residents can begin in neighbouring countries such as Bangladesh, Bhutan, Nepal and Sri Lanka, the sources said. If successful, such rupee-denominated lending could be extended to cross-border transactions globally, one of the sources said. According to Ministry of Commerce data, 90 per cent of India's exports to South Asia were to these four nations in 2024/25, amounting to nearly US$25 billion. Currently, foreign branches of Indian banks are restricted to providing loans in foreign currencies and such loans are extended mainly to Indian firms. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The sources declined to be identified as the discussions are confidential. E-mails sent to the Finance Ministry and the RBI requesting comment did not receive a response. The central bank has been taking steps to increase the use of the local currency in global trade and investment. As part of the strategy, RBI recently permitted the opening of rupee accounts for non-residents outside India. Earlier this month, Reuters reported the RBI has sought government approval to remove the cap on foreign banks with so-called vostro accounts buying short-term sovereign debt, to boost rupee-denominated investment and trade. The RBI will open the foreign loans in rupees only for the purpose of trade, the sources said. Currently, rupee liquidity is provided in other countries only through a limited number of government-backed credit lines or bilateral currency swap arrangements. 'The objective is to reduce dependence on such arrangements and instead allow commercial banks to provide rupee liquidity on market terms,' the first source said, citing a communication from the central bank in April. The second source said enabling easier access to rupee-denominated loans will help facilitate trade settlements in rupees and reduce exposure to foreign exchange volatility. The government has received several requests from financial institutions to support strategic projects through rupee-denominated financing, the second source said. India's experience with local currency pacts with the United Arab Emirates, Indonesia, and the Maldives, as well as Special Rupee Vostro Accounts used for trade with Sri Lanka and Bangladesh, has underscored the need to deepen the availability of rupee liquidity, the source said. If implemented, the policy would mark a major step towards integrating the rupee into the global financial system, positioning it as a more widely accepted currency for international trade and investment, the second source added. REUTERS
Business Recorder
26-05-2025
- Business
- Business Recorder
India's central bank seeks approval for overseas rupee lending to neighbours, sources say
NEW DELHI: India's central bank is taking another step to internationalise the rupee, seeking approval to allow domestic banks to lend the currency to overseas borrowers for the first time, two sources said. The Reserve Bank of India (RBI) has asked the federal government to allow domestic banks and their foreign branches to lend Indian rupees to overseas borrowers to enhance the use and acceptability of the local currency in trade. The proposal, which was sent to the finance ministry last month, suggests lending in rupees to non-residents can begin in neighbouring countries such as Bangladesh, Bhutan, Nepal and Sri Lanka, the sources said. If successful, such rupee-denominated lending could be extended to cross-border transactions globally, one of the sources said. According to Ministry of Commerce data, 90% of India's exports to South Asia were to these four nations in 2024/25, amounting to nearly $25 billion. Currently, foreign branches of Indian banks are restricted to providing loans in foreign currencies and such loans are extended mainly to Indian firms. The sources declined to be identified as the discussions are confidential. Emails sent to the Finance Ministry and the RBI requesting comment did not receive a response. The central bank has been taking steps to increase the use of the local currency in global trade and investment. As part of the strategy, RBI recently permitted the opening of rupee accounts for non-residents outside India. India central bank to transfer record surplus of 2.69 trillion rupees to government for FY25 Earlier this month, Reuters reported the RBI has sought government's approval to remove the cap on foreign banks with so-called vostro accounts buying short-term sovereign debt, to boost rupee-denominated investment and trade. The RBI will open the foreign loans in rupees only for the purpose of trade, the sources said. Currently, rupee liquidity is provided in other countries only through a limited number of government-backed credit lines or bilateral currency swap arrangements. 'The objective is to reduce dependence on such arrangements and instead allow commercial banks to provide rupee liquidity on market terms,' the first source said, citing a communication from the central bank in April. The second source said enabling easier access to rupee-denominated loans will help facilitate trade settlements in rupees and reduce exposure to foreign exchange volatility. The government has received several requests from financial institutions to support strategic projects through rupee-denominated financing, the second source said. India's experience with local currency pacts with the United Arab Emirates, Indonesia, and the Maldives, as well as Special Rupee Vostro Accounts used for trade with Sri Lanka and Bangladesh, has underscored the need to deepen the availability of rupee liquidity, the source said. If implemented, the policy would mark a major step toward integrating the rupee into the global financial system, positioning it as a more widely accepted currency for international trade and investment, the second source added.
Edinburgh Live
25-05-2025
- Entertainment
- Edinburgh Live
Jeremy Clarkson's emotional farewell as 'lifesaver' leaves Diddly Squat Farm
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info WARNING: THIS ARTICLE CONTAINS SPOILERS. The fresh episode of Clarkson's Farm on Prime Video has been a hit with fans as Jeremy Clarkson, Kaleb Cooper, and newcomer Harriet Cowan deal with an unruly boar on their patch. A vet advised Clarkson that the boar, showing aggressive tendencies towards other pigs, was not suitable for the farm. While the rest of the Diddly Squat Farm team were pleased to bid adieu to the cumbersome creature, another goodbye struck a sadder note. In a touching scene from episode three, Clarkson confided: "No one was upset to see Harvey [the boar] leave. "But it was now time for another departure from Diddly Squat, and that was a bit sad." Farmhand Harriet prepared to leave while Clarkson tenderly said: "So that's it, you're off.", reports Surrey Live. Clarkson inquired, "Are you off back to Derbyshire?" Harriet nodded about her homeward journey, prompting him to warmly advise her, "Well, listen, you have been an absolute star,". (Image: BANG Showbiz) (Image: PRIME VIDEO) (Image: PRIME VIDEO) He sincerely thanked her, "Thanks ever so much for all you have done, you have been absolutely brilliant, "You saved my life, you did." Jeremy had originally needed extra hands at the farm when Kaleb took off on his tour, and it was pal Charlie Ireland who recommended Harriet, the Derbyshire-based nurse with solid farming chops from her dad's place. Despite knowing Harriet was only ever meant to be a temporary fixture at the farm, saying farewell didn't come easy for Jeremy. In a moment of levity, he joked, "When we get stuck again, can I give you a call?" to which Harriet assured him she would always be there to lend a hand. As she said goodbye to her temporary haunt, a static caravan, she quipped, "When you and Lisa fall out, she can come and live here." He responded with a chuckle, "I like your thinking, I approve of that," as he showed his appreciation for his "lifesaver" upon their parting. He fondly remarked, "She's a superstar, that one," while watching Harriet depart. Initially, Kaleb wasn't exactly thrilled to meet another young farmer at Diddly Squat, but a sense of fellowship soon blossomed between them.
Boston Globe
24-05-2025
- Business
- Boston Globe
Pivoting from tax cuts to tariffs, Trump ignores economic warning signs
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Related : Advertisement Since taking office, Trump has raced to enact his economic vision, aiming to pair generous tax cuts with sweeping deregulation that he says will expand America's economy. He has fashioned his steep, worldwide tariffs as a political cudgel that will raise money, encourage more domestic manufacturing and improve U.S. trade relationships. But for many of his signature policies to succeed, Trump will have to prove investors wrong, particularly those who lend money to the government by buying its debt. Advertisement So far, bond markets are not buying his approach. Where Trump sees a 'golden age' of growth, investors see an agenda that comes with more debt, higher borrowing costs, inflation and an economic slowdown. Investors who once viewed government debt as a relatively risk-free investment are now demanding that the United States pay much more to those who lend America money. That is on top of businesses, House Speaker Mike Johnson (R-La.) spoke after the passage in the House of the One Big Beautiful Bill Act, on Thursday. KENNY HOLSTON/NYT Still, Trump continues to proclaim that his policies will bring prosperity. This past week, the White House released data showing that its tax cuts could increase U.S. output as much as 5.2% in the short term, compared with the gains it would have achieved if the bill is not adopted. The administration has stood largely alone in offering such rosy predictions about the effects of Trump's policies on businesses, average workers and the nation's fiscal future. In report after report, economists this past week predicted that Trump's signature tax package could Related : Advertisement The tax cuts are largely an extension of ones that Congress passed in 2017, meaning that few taxpayers will see an increase to their after-tax income. In fact, some might see their financial situation deteriorate: Many of the lowest earners may even see about $1,300 less on average under the Republican bill in 2030, according to the nonpartisan Penn Wharton Budget Model, which factored in the proposed cuts to federal safety-net programs. Facing an onslaught of red flags and dour reports, the White House has remained bullish. 'I think folks have cried wolf a lot,' Stephen Miran, chair of the president's Council of Economic Advisers, said in an interview, stressing that Trump's agenda would 'grow the economy.' In the past, investors and businesses might have rejoiced over Trump's grand proclamations about lowering taxes, reducing regulations and opening access to foreign markets. But the most common reaction this past week was concern over Trump's sclerotic approach, which has renewed fears that the economy could enter a prolonged period of pain. 'It's possible that you're going to get a big benefit to growth, but the costs are so obvious and so clear that I think it's hard to put a lot of faith in that at the moment,' said Eric Winograd, an economist at the investment firm AllianceBernstein. By most metrics, Trump inherited a solid economy. Layoffs were low when he took office and have stayed that way, helping to keep the unemployment rate stable. And consumers, even amid elevated prices, continued to spend apace. Four months into his second term, however, there are signs that the economy is beginning to come under greater strain, in what experts worry is a prelude to a more substantive slowdown. Although economists do not expect the economy to tip fully into a recession, they say Trump's tariffs in particular have raised the odds of a downturn, as both businesses and consumers begin to cut back. Advertisement Shipping containers at a port in Ho Chi Minh, Vietnam, on April 28. Many businesses, including Walmart, have said they may have to raise prices as a result of Trump's global trade war. LINH PHAM/NYT Many of the president's allies maintain that Trump is doing exactly as he promised during the 2024 presidential campaign, acting out of a belief that his vision can spur robust economic growth. In doing so, that can help to create jobs, raise wages and generate the sort of activity that can lessen the nation's fiscal imbalance, said Stephen Moore, a conservative economist who served as one of Trump's advisers during his first term. Some businesses have forecast price increases as a result of Trump's tariff threats. A report this past week from Allianz found that many businesses are trying to push the added tariff costs onto suppliers or consumers, with roughly half of its survey respondents saying they may increase prices. The potential for rising prices while growth is slowing poses a unique challenge for the Fed and its voting members, forcing them to reconcile with conflicting missions — a goal to pursue low, stable inflation, and a desire to sustain a healthy labor market. 'The bar for me is a little higher for action in any direction while we're waiting to get some clarity,' Austan Goolsbee, president of the Chicago Fed and a voting member on this year's rate-setting committee, told CNBC on Friday. Goolsbee recalled a recent exchange with the CEO of a construction business, who said: 'We're now in a put-your-pencils-down moment.' Businesses, Goolsbee said, now 'have to wait if every week or every month or every day there's going to be a new major announcement.' Advertisement 'They just can't take action until some of those things are resolved,' he added. This article originally appeared in .
