Latest news with #tradepolicies
Free Malaysia Today
15 hours ago
- Business
- Free Malaysia Today
Ringgit strengthens on Trump's disruptive trade policy push
KUALA LUMPUR : The ringgit continued to strengthen against the US dollar on Wednesday, as the US economy is perceived as fragile amid the Trump administration's continued push for disruptive trade policies. At 8am, the local note inched higher to 4.2370/4.2640 versus the greenback from Tuesday's close of 4.2425/4.2485. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit is expected to remain strong as the US economy is still seen as fragile, according to survey data such as the US Institute for Supply Management (ISM) Index and Consumer Sentiment Index. 'The data indicates business and consumers have become more cautious in their spending going forward as the Trump administration pushes forward their agenda on trade policies that are hostile and disruptive to global supply chains,' he noted. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Sedek Jantan, said the US dollar index (DXY) climbed to 99.2 from 98.9. 'Improved US labour data is lending support to the greenback. Job openings rose to 7.4 million in April, exceeding forecasts of 7.1 million. 'Wage growth is expected to continue outstripping inflation on average, which should underpin consumer spending and broader economic momentum,' he said. Sedek said greater clarity on the US labour market will come with Friday's nonfarm payrolls report. At the opening, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9456/2.9646 from Tuesday's close of 2.9695/2.9739, climbed vis-à-vis the euro to 4.8234/4.8541 from 4.8415/4.8484, and inched up against the British pound to 5.7331/5.7696 from 5.7337/5.7418 previously. Against its Asean peers, the ringgit rose against the Singapore dollar to 3.2868/3.3082 from 3.2967/3.3016 on Tuesday's close and improved vis-à-vis the Thai baht to 12.9786/13.0777 from 13.0334/13.0603 previously. It was slightly higher versus the Indonesian rupiah, at 259.7/261.5, compared to 260.1/260.6 on yesterday's close, and gained against the Philippine peso to 7.60/7.66 from 7.61/7.63 previously.
Malay Mail
19 hours ago
- Business
- Malay Mail
Ringgit climbs against greenback as Trump's trade disruptions weigh on US economic outlook
KUALA LUMPUR, June 4 — The ringgit continued to strengthen against the US dollar on Wednesday, as the US economy is perceived as fragile amid the Trump administration's continued push for disruptive trade policies. At 8am, the local note inched higher to 4.2370/2640 versus the greenback from Tuesday's close of 4.2425/2485. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain strong as the US economy is still seen as fragile, according to survey data such as the US Institute for Supply Management (ISM) Index and Consumer Sentiment Index. 'The data indicates business and consumers have become more cautious in their spending going forward as the Trump administration pushes forward their agenda on trade policies that are hostile and disruptive to global supply chains,' he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said the US dollar index (DXY) climbed to 99.2 from 98.9. 'Improved US labour data is lending support to the greenback. Job openings rose to 7.4 million in April, exceeding forecasts of 7.1 million. 'Wage growth is expected to continue outstripping inflation on average, which should underpin consumer spending and broader economic momentum,' he said. Mohd Sedek said greater clarity on the US labour market will come with Friday's nonfarm payrolls report. At the opening, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9456/9646 from Tuesday's close of 2.9695/9739, climbed vis-à-vis the euro to 4.8234/8541 from 4.8415/8484, and inched up against the British pound to 5.7331/7696 from 5.7337/7418 previously. Against its Asean peers, the ringgit rose against the Singapore dollar to 3.2868/3082 from 3.2967/3016 on Tuesday's close and improved vis-à-vis the Thai baht to 12.9786/13.0777 from 13.0334/0603 previously. It was slightly higher versus the Indonesian rupiah, at 259.7/261.5, compared to 260.1/260.6 on yesterday's close, and gained against the Philippine peso to 7.60/7.66 from 7.61/7.63 previously. — Bernama
News.com.au
21 hours ago
- Business
- News.com.au
ASX health May winners: Sector rises 1.59pc but market volatility remains
The S&P/ASX 200 Health Care Index rose 1.59% in May but remains worst performing sector YTD down 5.65% Morgans healthcare analyst Iain Wilkie said US President Donald Trump's trade and health policies continue to impact sector Lumos up 7.4% in May after several positive announcements including largest single purchase order for point-of-care respiratory test The S&P/ASX 200 Health Care Index rose 1.59% in May, easing from a 2.16% gain in April but still finishing in the green. However, the sector is still not faring well and is the worst-performing year-to-date, down 5.65%. The sector rose in line with broader markets in May with the S&P/ASX 200 gaining 4.20% as fears around escalating US tariffs and a potential US-China trade war eased, bringing relief to global markets. Morgans healthcare analyst Iain Wilkie told Stockhead that 2025 had been very volatile for the sector. "Each month seems to be either up or down and the sector hasn't gained any real momentum at this stage," he said. Wilkie said US President Donald Trump and his trade and health policies were still impacting the sector. "It's just uncertainty which is driving everything at the moment," he said. In May Trump signed an executive order lowering prices of US prescription medicines to bring them in line with other countries, a policy referred to as the 'most favored nation' (MFN). The MFN policy aims to link US drug prices to much lower prices overseas – what Trump referred to as 'equalizing' prices. Trump said the order aimed to cut US pharmaceutical prices from between 59% to 90% and sets price targets for drugmakers to meet within 30 days and warns that further action will be taken if they fail to make 'significant progress' toward those goals. In a release The White House said the US had less than 5% of the world's population and yet funds around three quarters of global pharmaceutical profits. "There's no clear path on what happens next and consequences pharmaceutical companies may face," Wilkie said. "But its just created further uncertainty in the healthcare and pharmaceutical sectors in an already uncertain time." How ASX biotechs performed in May CODE COMPANY PRICE 1 MONTH RETURN % MARKET CAP DVL Dorsavi Ltd $ 0.02 36.4% 10.97 IVX Invion Ltd $ 0.11 28.0% 8.47 CC5 Clever Culture $ 0.02 26.7% 33.55 VFX Visionflex Group Ltd $ 0.003 25.0% 8.42 NYR Nyrada Inc $ 0.18 24.1% 37.97 IIQ Inoviq Ltd $ 0.55 23.9% 63.07 OSX Osteopore Limited $ 0.02 21.4% 2.95 PEB Pacific Edge $ 0.09 18.7% 60.89 ICR Intelicare Holdings $ 0.01 14.3% 3.89 MVP Medical Developments $ 0.67 11.7% 75.48 PCK Painchek Ltd $ 0.06 11.5% 106.83 IRX Inhalerx Limited $ 0.03 11.1% 6.40 ALA Arovella Therapeutic $ 0.08 11.0% 88.79 IPD Impedimed Limited $ 0.03 10.0% 66.91 LGP Little Green Pharma $ 0.11 10.0% 34.96 ATH Alterity Therapeutics $ 0.01 10.0% 100.40 DOC Doctor Care Anywhere $ 0.11 10.0% 38.50 AGH Althea Group $ 0.03 8.7% 20.56 ALC Alcidion Group Ltd $ 0.09 8.6% 114.15 HMD Heramed Limited $ 0.01 8.3% 11.38 MDR Medadvisor Limited $ 0.09 8.1% 57.48 RAD Radiopharm $ 0.03 8.0% 65.35 LDX Lumos Diagnostics $ 0.03 7.4% 21.71 AVR Anteris Technologies $ 6.29 6.6% 99.41 AFP AFT Pharmaceuticals $ 2.60 6.1% 272.65 ARX Aroa Biosurgery $ 0.49 5.4% 165.55 UCM Uscom Limited $ 0.02 5.3% 4.76 RHC Ramsay Health Care $ 37.90 5.1% 7,049.83 CVB Curvebeam Ai Limited $ 0.09 4.9% 26.97 REG Regis Healthcare Ltd $ 8.13 4.9% 1,242.92 TRI Trivarx Ltd $ 0.01 4.8% 6.79 ACR Acrux Limited $ 0.02 4.3% 9.79 VLS Vita Life Sciences $ 1.89 4.1% 104.29 PGC Paragon Care Limited $ 0.40 3.9% 662.12 NSB Neuroscientific $ 0.06 3.8% 7.95 CMP Compumedics Limited $ 0.28 3.7% 53.82 SPL Starpharma Holdings $ 0.09 3.4% 38.48 NOX Noxopharm Limited $ 0.07 2.9% 21.04 GLH Global Health Ltd $ 0.08 2.6% 4.63 CMB Cambium Bio Limited $ 0.21 2.5% 3.75 PIQ Proteomics Int Lab $ 0.42 2.4% 59.56 SDI SDI Limited $ 0.85 2.4% 99.25 CSX Cleanspace Holdings $ 0.45 2.3% 34.81 ATX Amplia Therapeutics $ 0.05 2.0% 19.40 MVF Monash IVF Group Ltd $ 0.78 2.0% 301.97 IDX Integral Diagnostics $ 2.43 1.9% 870.95 EZZ EZZ Life Science $ 1.54 1.7% 72.65 IMC Immuron Limited $ 0.07 1.5% 15.67 FRE Firebrickpharma $ 0.07 1.5% 15.05 SHL Sonic Healthcare $ 26.62 1.4% 12,821.98 FPH Fisher & Paykel Healthcare $ 34.59 1.4% 6,585.46 IMR Imricor Med Systems $ 1.67 1.2% 541.55 OCC Orthocell Limited $ 1.27 1.2% 307.31 PME Pro Medicus Limited $ 280.98 0.9% 15,316.67 PAR Paradigm Biopharmaceuticals $ 0.31 0.8% 120.72 CTE Cryosite Limited $ 0.75 0.7% 36.61 CHM Chimeric Therapeutic $ 0.00 0.0% 8.06 IXC Invex Therapeutics $ 0.09 0.0% 6.99 COV Cleo Diagnostics $ 0.35 0.0% 27.74 IDT IDT Australia Ltd $ 0.10 0.0% 45.12 EYE Nova EYE Medical Ltd $ 0.13 0.0% 35.52 OCA Oceania Healthc Ltd $ 0.59 0.0% 427.30 EPN Epsilon Healthcare $ 0.02 0.0% 8.29 TD1 Tali Digital Limited $ 0.00 0.0% 3.30 OIL Optiscan Imaging $ 0.13 0.0% 112.77 PER Percheron $ 0.01 0.0% 10.87 OSL Oncosil Medical $ 1.20 0.0% 13.82 BIT Biotron Limited $ 0.00 0.0% 3.32 EOF Ecofibre Limited $ 0.02 0.0% 7.58 TRP Tissue Repair $ 0.19 0.0% 11.19 IBX Imagion Biosys Ltd $ 0.01 0.0% 2.42 SOM SomnoMed Limited $ 0.59 0.0% 129.66 ANR Anatara Ls Ltd $ 0.01 0.0% 1.07 HIQ Hitiq Limited $ 0.02 0.0% 7.57 ADR Adherium Ltd $ 0.01 0.0% 5.31 PSQ Pacific Smiles Grp $ 1.81 -0.3% 291.73 COH Cochlear Limited $ 271.60 -0.4% 17,779.29 CSL CSL Limited $ 247.16 -0.7% 119,986.49 TLX Telix Pharmaceutical $ 25.98 -0.8% 7,546.94 HLS Healius $ 0.88 -0.8% 635.37 ANN Ansell Limited $ 31.19 -0.9% 4,566.62 SNZ Summerset Grp Hldgs $ 10.21 -0.9% 2,461.11 MYX Mayne Pharma Ltd $ 4.80 -1.0% 376.51 RGT Argent Biopharma Ltd $ 0.09 -1.1% 6.86 PNV Polynovo Limited $ 1.27 -1.2% 870.46 PYC PYC Therapeutics $ 1.20 -1.2% 699.91 BDX Bcal Diagnostics $ 0.08 -1.3% 27.45 NEU Neuren Pharmaceuticals $ 13.85 -1.4% 1,765.00 RMD ResMed Inc. $ 37.58 -1.5% 22,360.10 IME Imexhs Limited $ 0.33 -1.5% 17.70 LTP LTR Pharma $ 0.32 -1.5% 34.71 AHC Austco Healthcare $ 0.31 -1.6% 112.86 RHY Rhythm Biosciences $ 0.06 -1.6% 17.87 ONE Oneview Healthcare $ 0.27 -1.9% 202.31 VHL Vitasora Health Ltd $ 0.04 -2.4% 66.24 MSB Mesoblast Limited $ 1.60 -2.4% 1,560.40 CYC Cyclopharm Limited $ 1.18 -2.5% 131.70 AHX Apiam Animal Health $ 0.39 -2.5% 71.74 EBO Ebos Group Ltd $ 34.69 -2.5% 1,365.85 IMM Immutep Ltd $ 0.28 -2.6% 407.57 VIT Vitura Health Ltd $ 0.07 -2.9% 45.03 CUV Clinuvel Pharmaceuticals $ 10.24 -3.0% 457.13 AVH Avita Medical $ 1.89 -3.1% 123.08 NAN Nanosonics Limited $ 4.39 -3.1% 1,282.02 NUZ Neurizon Therapeutic $ 0.15 -3.3% 68.92 MAP Microba Life Sciences $ 0.15 -3.3% 64.94 BMT Beamtree Holdings $ 0.28 -3.4% 81.15 SIG Sigma Health Ltd $ 3.06 -3.5% 17,428.00 MX1 Micro-X Limited $ 0.06 -3.5% 36.70 CGS Cogstate Ltd $ 1.30 -3.5% 219.41 NC6 Nanollose Limited $ 0.05 -3.8% 15.24 RCE Recce Pharmaceutical $ 0.34 -4.2% 90.39 AYA Artrya $ 0.73 -4.6% 82.43 ACW Actinogen Medical $ 0.02 -4.8% 63.54 DXB Dimerix Ltd $ 0.58 -4.9% 326.72 ACL Au Clinical Labs $ 2.78 -5.1% 395.94 EBR EBR Systems $ 1.09 -5.2% 465.57 NXS Next Science Limited $ 0.07 -5.6% 19.57 EMV Emvision Medical $ 1.68 -5.6% 140.67 AT1 Atomo Diagnostics $ 0.02 -5.9% 10.98 PTX Prescient Ltd $ 0.05 -6.0% 37.85 AGN Argenica $ 0.77 -6.1% 98.63 M7T Mach7 Tech Ltd $ 0.35 -6.7% 84.43 BOT Botanix Pharma Ltd $ 0.35 -6.8% 620.71 ZLD Zelira Therapeutics $ 0.46 -7.1% 5.71 SNT Syntara Limited $ 0.07 -7.1% 105.57 CAN Cann Group Ltd $ 0.01 -7.1% 8.09 TYP Tryptamine Ltd $ 0.03 -8.6% 44.45 NTI Neurotech International $ 0.02 -8.7% 22.04 SHG Singular Health $ 0.30 -9.1% 83.31 ECS ECS Botanics Holding $ 0.01 -9.1% 14.26 GSS Genetic Signatures $ 0.49 -9.3% 110.16 CBL Control Bionics $ 0.03 -9.7% 8.84 ILA Island Pharma $ 0.21 -10.6% 49.05 UBI Universal Biosensors $ 0.04 -10.6% 12.52 EMD Emyria Limited $ 0.03 -10.7% 13.75 TRU Truscreen $ 0.02 -11.1% 13.32 RHT Resonance Health $ 0.04 -11.6% 20.22 RAC Race Oncology Ltd $ 1.21 -12.0% 210.22 4DX 4DMedical Limited $ 0.31 -12.9% 146.64 CYP Cynata Therapeutics $ 0.17 -13.2% 37.28 CU6 Clarity Pharma $ 1.91 -13.8% 535.84 CDX Cardiex Limited $ 0.04 -16.1% 17.87 1AI Algorae Pharma $ 0.01 -16.7% 8.44 TRJ Trajan Group Holding $ 0.77 -16.8% 116.57 IMU Imugene Limited $ 0.01 -17.6% 112.01 MEM Memphasys Ltd $ 0.00 -18.2% 7.93 AVE Avecho Biotech Ltd $ 0.00 -20.0% 12.69 BP8 Bph Global Ltd $ 0.00 -20.0% 2.10 VBS Vectus Biosystems $ 0.05 -21.7% 2.50 CTQ Careteq Limited $ 0.01 -23.1% 2.37 1AD Adalta Limited $ 0.00 -33.3% 1.93 Inoviq (ASX:IIQ) rose ~24% in May and got hit with a speeding ticket by the ASX. The oncology play had no particular news out in May and attributed the increase to publication online of an abstract accepted by the American Society of Clinical Oncology (ASCO) for a poster presentation about results of its EXO-OC test for ovarian cancer. Inoviq said the result had already been released in December and referred to in subsequent business updates. "Some shareholders may have missed or misunderstood the significance of our 3 December 2024 ASX release and subsequent related updates noted above and may believe the Abstract contains new or better information, which is materially price sensitive, that is not the case in the company's view. The company said new information to be delivered in the poster presentation at the ASCO annual meeting on June 1 was "considered price sensitive". On June 2 Inoviq announced that new data presented at the ASCO meeting showed its EXO-OC test achieved 77% sensitivity at 99.6% specificity for detecting ovarian cancer at all stages. Clever Culture Systems (ASX:CC5) continued to build momentum in May and was up 26.7% for the month after announcing a positive quarterly update in April, including its second quarter of positive cashflow. Clever Culture is targeting profitability in FY25 and building a substantial sales pipeline to underpin growth in FY26 for its APAS Independence instruments, which remain the only US FDA-cleared AI technology for automated culture plate reading. Lumos Diagnostics (ASX:LDX) rose 7.4% in May after several positive announcements including the largest single purchase order to date for its FebriDx test, a rapid point-of-care (POC) diagnostic designed to differentiate between bacterial and non-bacterial acute respiratory infections. Developer and distributor of cost-saving solutions for hospitals, surgery centres, clinics and healthcare facilities across the US iMedical purchased US$126,000 worth of FebriDx tests. In May Lumos also expanded Medicare reimbursement coverage in the US for FebriDx. By the end of May Lumos had secured reimbursement from six out of seven US Medicare Administrative Contractors (MACs) representing over 85% of US Medicare payment coverage. And Australia's biggest private hospital operator Ramsay Health Care (ASX:RHC) rose 5.1% in May after providing a positive update on its 52.8% stake in European hospitals business Santé, with unaudited group revenue for the nine months period ending March 31, up by 5.1%.
Telegraph
3 days ago
- Business
- Telegraph
Bond markets are waking up to Trump's chaotic tariffs regime
If you didn't already fully understand the meaning of 'uncertainty', last week should have provided you with plenty of learning material. The concept of uncertainty relates to a situation when there is no known calculus for anticipating future outcomes. This contrasts with the concept of risk – when you can gauge the probabilities. Perhaps the purest case of risk concerns the chance of a ball sent spinning by a roulette wheel landing on a particular number. One hundred years ago, John Maynard Keynes made much of this distinction but it is still given insufficient attention. Financial and economic analysis is usually conducted solely on the basis of risk. The world is full of people who seem to think that they can calculate risks when, in reality, they haven't a clue. Keynes thought that the financial and business worlds were beset with endemic uncertainty. Sometimes economic agents would be immobilised by it. At other times, they might simply put it out of their mind, or assume the best, or press on regardless. This is why he thought market participants' 'animal spirits' were so important. In general, financial markets hate uncertainty and so do the managers of financial and non-financial businesses. Last week, the uncertainty quotient leapt up thanks to the still developing consequences of Donald Trump's trade policies. The fun and games last week started when the US Court of International Trade (CIT) blocked two of Trump's key tariff measures, that is to say, 'trafficking tariffs' – i.e. those related to fentanyl on Canada, Mexico and China – as well as his 'worldwide and retaliatory tariffs' on most countries. It took this action because it believes that the US president didn't have the authority to impose these tariffs under the International Emergency Economic Powers Act. You might imagine that this would have an extremely favourable impact, as it seemed to imply a yet further unravelling of Trump's tariff shock. After all, the markets were badly hit when Trump first announced his tariffs on 'liberation day'. So you might reasonably think that markets would surge on news of their undoing. Indeed, the US and other equity markets did react favourably at first. But then the euphoria fizzled out. Partly, this was because equity markets had already regained most, if not all, of the ground they had lost on the initial tariff announcements – due mainly to Trump's backtracking and apparent second thoughts. The lukewarm reaction was also partly because it is widely assumed that the Trump administration would find a way round this. Indeed, on Thursday a US appeals court granted at least a temporary reprieve. The next stop will be the Supreme Court, which is dominated by Republicans. Moreover, even if the Supreme Court upholds the CIT's ruling, the Trump administration would probably try to find other ways of increasing tariffs, such as ramping up Section 301 and 232 investigations into various countries' trade policies, or trying to get Congress to pass legislation imposing tariffs. It was striking that the CIT's ruling wasn't warmly welcomed by the US Treasury market. Indeed, the 10-year bond yield initially edged up to over 4.5pc. The dominant thinking here concerns the possible fiscal implications of a failure by the Trump administration to enact widespread tariff increases. This is because the extra tariff revenue to be raised by Trump's measures was intended to largely offset the loss of tax revenue resulting from Trump's 'big beautiful bill', introducing or extending substantial tax reductions, which has now passed the House of Representatives. If the president presses on with tax cuts but is unable to push through substantial increases in tariffs then the implication would be a significant increase in the budget deficit – hence higher bond yields. Admittedly, if Trump's tariffs are blocked, then there would be much less upward pressure on inflation and that would make it easier for the Federal Reserve to cut interest rates sooner and by more than would otherwise have been the case. Ordinarily, the bond market would like this. But if Trump is prevented from using tariffs as a way of closing the American trade deficit, then he may well want to substitute policies that would cause the dollar to fall substantially. That would renew inflation worries at the Fed – as well as causing widespread consternation among international holders of dollar assets. Actually, a depreciation of the currency, rather than tariffs, is the textbook way of addressing a trade deficit. But, of course, currency depreciation doesn't discriminate between countries and it affects both imports and exports of all types of goods, as well as services. That is precisely why economists tend to favour it. Importantly, though, unlike the imposition of tariffs, a currency depreciation does not produce any extra revenue for the government. That is the key reason why the Trump administration has favoured tariffs. As well as the potential impact on US financial markets and the American economy, these tariff shenanigans potentially have major effects on the world economy. If the proposed tariffs are rescinded, the countries set to gain the most are those heavily exposed to trade with the US – Canada, Mexico, Vietnam, Korea and Japan. Importantly, with tariffs on automative, steel and aluminium imports still in place, Canada, Mexico, Japan and Korea are heavily at risk – unless they can negotiate further concessions as the UK did. lose patience with Vladimir Putin. He may well impose tougher sanctions on Russia and those countries dealing with it, or even step up military aid for Ukraine.
Telegraph
6 days ago
- Business
- Telegraph
Why investors are wrong to celebrate the Trump tariff ban
Three American judges have thrown Donald Trump's trade policies into disarray, triggering celebrations on global stock markets. The US Court of International Trade ruled on Wednesday night that the President did not have the authority to use emergency powers to impose his 'liberation day' tariffs. He now has 10 days to cancel them. Stock markets were quick to cheer the news, with Tokyo's Nikkei 225 index up 1.9pc and the S&P 500 in the US expected to open up 1pc in New York. However, the popping of champagne corks may be premature. The White House isn't backing down, with a spokesman insisting it was 'not for unelected judges to decide how to properly address a national emergency'. The court itself acknowledged there were other ways for the Trump administration to impose tariffs on other countries. Experts view this as only a temporary setback for Trump and believe it is only a matter of time before he strikes again. What did the ruling say? The US court ruling centres on a decades-old law that hands the President sweeping economic powers during a national emergency. The International Emergency Economic Powers Act (IEEPA) replaced the aptly titled Trading with the Enemy Act in 1977, which had itself been in place since the First World War. Under the IEEPA, presidents can take a wide variety of actions 'to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy or economy' of the country. The law has been invoked around 70 times since it was introduced, including by Jimmy Carter to freeze Iranian government assets in the US in response to the 1979 hostage crisis. However, judges ruled that Trump had overstepped his authority by using the law to impose blanket tariffs on US trading partners. 'The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage,' the judges said. 'That use is impermissible [is] not because it is unwise or ineffective, but because [the law] does not allow it.' Does it mean the end of tariffs? The ruling does not affect US tariffs imposed on imports of cars and steel. The Trump administration has also made it clear officials intend to fight the Court of International Trade ruling to defend the President's right to impose his tariffs. The White House almost immediately lodged an appeal to the judgment. Catherine Barnard, a law professor at the University of Cambridge, says: 'I was very struck by somebody very senior in the White House who came out and said: 'This is a judicial coup', and it would indicate that that's the line they're going to take, that as President he [Trump] shouldn't be constrained. He was elected on a ticket of doing what's best for America, and that includes tariffs. 'This is gearing up to be a really serious confrontation between the executive and the courts. The fact they appealed instantly shows that they're going to fight it all the way.' Hosuk Lee-Makiyama, a trade lawyer, is more blunt. In his view, the Court of International Trade ruling is 'a non event'. 'It really means nothing. It's going to be appealed. So it will end up with the Supreme Court and that's where the big decision will be taken,' he says. He notes that the Supreme Court is mostly made up of Republican-appointed judges, three of whom Trump appointed himself. 'It would be quite, let's say, spectacular if the Supreme Court would rule against Donald Trump,' says Lee-Makiyama. Dragging the case through the courts is a lengthy process. 'You're talking months here,' says Barnard. What are President Trump's options? In the meantime, Trump can still use other legislative means to try and push through tariffs. Analysts at Goldman Sachs said the administration could quickly replace the 10pc across-the-board tariff with a similar levy of up to 15pc under Section 122 of the 1974 Trade Act. This hands the President powers to try to stop money flooding out of the country or to stop a big fall in the value of the dollar. Alec Phillips at Goldman notes that invoking Section 122 does not require 'any formal investigation or process, so the administration could theoretically replace the current 10pc 'reciprocal' tariff [announced on April 2] with a [new] tariff within days if deemed necessary.' Section 122 tariffs have a time limit of 150 days, after which Trump should consult Congress. Alternatively, the president could use Section 232 of a 1962 trade law, which is the legislation he has already used on as the basis for steel, aluminium and car tariffs. The section allows tariffs on certain imports that 'threaten to impair' US national security. While that gives broad sweep, an investigation is required within 270 days after imposing any levies. Trump has suggested tariffs on pharmaceuticals and semiconductors will fall under these provisions. Phillips says: 'President Trump has not emphasised these so-called sectoral tariffs as frequently lately as he did earlier this year, but if the White House finds it has less flexibility on country-focused tariffs, sectoral tariffs might receive more attention again.' The White House could also launch Section 301 investigations into trading partners it believes are engaging in unfair or discriminatory trade practices. If the investigation does find foul play, tariffs can be deployed. There is no limit on there level or duration. Another option is Section 338 of the 1930 Trade Act, which gives the president the authority to impose tariffs of up to 50pc on imports from countries that Trump believes are discriminating against the US. While there is a limit on the maximum tariff rate, it does not require a formal investigation. This option has not been used before. What will he go for? Most economists believe Trump will announce a new set of emergency tariffs within days. Phillips at Goldman says: 'As it seems unlikely that the administration could win an appeal in the 10 days it has under the court order to remove the tariffs, we would expect the White House to announce a similar across-the-board tariff using Sec. 122. 'This would then provide the administration time to launch a series of Sec. 301 cases against larger trading partners, potentially opening the door to imposing tariffs higher than 10pc in some cases.' Where does this ruling leave the UK? The UK struck a trade deal with the US that reduces tariffs on cars, steel and aluminium among other things, though 10pc tariffs on most imports remain. The Court of International Trade ruling appears to cast uncertainty over that deal. However, David Henig, from the European Centre for International Political Economy, says the UK deal is unlikely to be affected. 'The deal that the UK did was on a different set of tariffs that have not been ruled illegal. They're all about steel and car tariffs and getting relief from those,' he says. Anand Menon, Professor of European Politics and Foreign Affairs at King's College London, says there are implications for Brussels, however, which is currently scrambling to strike a quick trade deal with the US after Trump threatened to impose 50pc tariffs on the EU in July. 'It eases the pressure because it means they're not liable to the massive tariffs that Trump's trying to impose on them,' Menon says. 'There will be a fight inside the European Union as to whether this is the moment where it stands up, or whether you turn around to the US and say, 'OK, let's deal'. It's not clear to me which side will win that debate.' Henig adds: 'The EU really did want to have these tariffs eliminated. The court said they should be, but Trump's now going to want to put them back by some other means [and] that might actually delay the EU doing negotiations. '[So] for the EU it doesn't look so good. But today it's good for the UK, probably less good for the EU, terrible for business because literally, you have no idea what you're going to pay day to day. 'That doesn't look likely to change anytime. The uncertainty is just a horrible, horrible kind of destroyer of the economy.'
