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US trade court blocks Donald Trump's 'Liberation Day' tariffs
US trade court blocks Donald Trump's 'Liberation Day' tariffs

SBS Australia

time21 minutes ago

  • Business
  • SBS Australia

US trade court blocks Donald Trump's 'Liberation Day' tariffs

A United States trade court has blocked Donald Trump's "Liberation Day" tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the US than they buy. The Manhattan-based Court of International Trade said the US constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the US economy. "The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it," a three-judge panel said in the decision. The ruling came in a pair of lawsuits, one filed by the nonpartisan Liberty Justice Center 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. 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. "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 the International Emergency Economic Powers Act (IEEPA), which is meant to address "unusual and extraordinary" threats during a national emergency. The law 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. Many of those country-specific tariffs were subsequently paused. The Trump administration announced on 12 May that it would also temporarily reduce 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. Trump's on-and-off-again tariffs, which he has said are intended to restore US manufacturing capability, have shocked US financial markets. The US dollar rose against both the Swiss franc, a traditional currency safe-haven, and the Japanese yen following the court decision. The trade court's decision can be appealed to the US Court of Appeals for the Federal Circuit in Washington, and ultimately the US Supreme Court.

A new COVID variant is driving up infections in Australia. Here's what to know about NB.1.8.1
A new COVID variant is driving up infections in Australia. Here's what to know about NB.1.8.1

SBS Australia

time5 hours ago

  • Health
  • SBS Australia

A new COVID variant is driving up infections in Australia. Here's what to know about NB.1.8.1

As we enter the colder months in Australia, COVID is making headlines again, this time due to the emergence of a new variant: NB.1.8.1. Last week, the World Health Organization designated NB.1.8.1 as a "variant under monitoring", owing to its growing global spread and some notable characteristics which could set it apart from earlier variants. So, what do you need to know about this new variant? More than five years since COVID was initially declared a pandemic, we're still experiencing regular waves of infections. It's more difficult to track the occurrence of the virus nowadays, as fewer people are testing and reporting infections. But available data suggests in late May 2025, case numbers in Australia were ticking upwards. Genomic sequencing has confirmed NB.1.8.1 is among the circulating strains in Australia, and generally increasing. Of cases sequenced up to 6 May across Australia, NB.1.8.1 ranged from less than 10 per cent in South Australia to more than 40 per cent in Victoria. Wastewater surveillance in Western Australia has determined NB.1.8.1 is now the dominant variant in wastewater samples collected in Perth. Internationally NB.1.8.1 is also growing. By late April 2025, it comprised roughly 10.7 per cent of all submitted sequences — up from just 2.5 per cent four weeks prior. While the absolute number of cases sequenced was still modest, this consistent upward trend has prompted closer monitoring by international public health agencies. NB.1.8.1 has been spreading particularly in Asia — it was the dominant variant in Hong Kong and China at the end of April. According to the WHO, NB.1.8.1 was first detected from samples collected in January 2025. It's a sublineage of the Omicron variant, descending from the recombinant XDV lineage. "Recombinant" is where a new variant arises from the genetic mixing of two or more existing variants. The image to the right shows more specifically how NB.1.8.1 came about. Like its predecessors, NB.1.8.1 carries a suite of mutations in the spike protein. This is the protein on the surface of the virus that allows it to infect us – specifically via the ACE2 receptors, a "doorway" to our cells. The mutations include T22N, F59S, G184S, A435S, V445H, and T478I. It's early days for this variant, so we don't have much data on what these changes mean yet. But a recent preprint (a study that has not yet been peer-reviewed) offers some clues about why NB.1.8.1 may be gathering traction. Using lab-based models, researchers found NB.1.8.1 had the strongest binding affinity to the human ACE2 receptor of several variants tested — suggesting it may infect cells more efficiently than earlier strains. The study also looked at how well antibodies from vaccinated or previously infected people could neutralise or "block" the variant. Results showed the neutralising response of antibodies was around 1.5 times lower to NB.1.8.1 compared to another recent variant, LP.8.1.1. This means it's possible a person infected with NB.1.8.1 may be more likely to pass the virus on to someone else, compared to earlier variants. The evidence so far suggests NB.1.8.1 may spread more easily and may partially sidestep immunity from prior infections or vaccination. These factors could explain its rise in sequencing data. But importantly, the WHO has not yet observed any evidence it causes more severe disease compared to other variants. Reports suggest symptoms of NB.1.8.1 should align closely with other Omicron subvariants. Common symptoms include sore throat, fatigue, fever, mild cough, muscle aches and nasal congestion. Gastrointestinal symptoms may also occur in some cases. There's potential for this variant to play a significant role in Australia's winter respiratory season. Public health responses remain focused on close monitoring, continued genomic sequencing, and promoting the uptake of updated COVID boosters. Even if neutralising antibody levels are modestly reduced against NB.1.8.1, the WHO has noted current COVID vaccines should still protect against severe disease with this variant. The most recent booster available in Australia and many other countries targets JN.1, from which NB.1.8.1 is descended. So it makes sense that it should still offer good protection. Ahead of winter and with a new variant on the scene, now may be a good time to consider another COVID booster if you're eligible. For some people, particularly those who are medically vulnerable, COVID can still be a serious disease. Lara Herrero receives funding from the National Health and Medical Research Council.

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