The US Supreme Court has ruled that President Trump's authority to impose tariffs on nations with a substantial trade deficit is limited by law. The court rejected the president's claim that he has the power to act unilaterally, citing the International Emergency Economic Powers Act of 1977. Three judges, including Timothy Reif and Jane Restani, agreed that the tariffs exceed any granted authority under the law. The ruling was a blow to Trump's efforts to address trade deficits, which have persisted for 49 consecutive years. Small businesses, such as wine importer VOS Selections, and a dozen states, led by Oregon, had filed lawsuits challenging the tariffs, with Attorney General Dan Rayfield stating that the decision "reaffirms that our laws matter."
https://www.thehindu.com/news/international/federal-court-blocks-trump-from-imposing-sweeping-tariffs-under-emergency-powers-law/article69631843.eceThe Trump administration has filed an appeal after a ruling that could impact its emergency power tariffs, leaving businesses and consumers uncertain about future trade negotiations. The uncertainty has led to market fluctuations, with the S&P 500 and Dow Jones Industrial Average experiencing gains of 1.6% and 1.2%, respectively. Japan's Nikkei 225 index jumped 1.5% as its government appeals for Trump to cancel tariffs on imports. The ruling also strengthened the US dollar against the Japanese yen, trading at 146.06 yen. In Australia and South Korea, markets surged due to interest rate cuts by their central banks, with the Kospi index rising 1.4%.
https://www.euronews.com/business/2025/05/29/federal-court-blocks-donald-trump-from-imposing-sweeping-tariffsUS Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and US Secretary of State Marco Rubio support the view that IEEPA tariffs are a vital part of President Trump's foreign policy toolkit. The court case argues that IEEPA does not authorize tariffs for routine trade matters, but rather for "unusual and extraordinary threats." Lutnick cites China as an example of the effectiveness of punitive levies in pressuring Beijing to lower its own tariffs on US goods.
https://www.thenews.com.pk/print/1316360-trump-aide-claims-tariffs-helped-broker-india-pakistan-ceasefireDonald Trump has a history of backing down first in trade policy disputes, as seen in his postponement of reciprocal tariffs with worldwide implications announced in April and his agreement to a trade truce with Beijing in May. He previously lashed out at Apple and threatened a 50% tariff on EU imports in July.
https://www.politico.eu/article/europe-donald-trump-tariffs-threats-china-vat/US stocks rallied with Asian markets after a US court blocked Donald Trump's global tariff plan, providing relief to investors and tech firms like Nvidia, which reported better-than-expected earnings. The ruling, seen as a check on the president's power, boosted risk appetite among investors, who had been anxious about a potential recession. Markets in Japan, South Korea, Hong Kong, Shanghai, Sydney, Taipei, and Manila surged, while US futures gained over 1% each. Analysts say the decision marks a "structural pivot" in the narrative, shifting from strongman tariffs to institutional guardrails, as investors take advantage of the buying opportunity despite ongoing trade tensions.
https://www.victoriaadvocate.com/news/nation/asian-equities-boosted-by-us-courts-tariff-ruling-nvidia-results/article_3c083fa8-0e1b-517a-a5d8-ccbd272e4408.htmlThe US Court of International Trade blocked President Donald Trump's "Liberation Day" tariffs, ruling that Trump overstepped his authority in imposing duties on imports from countries that sell more to the US than they buy. The court stated that Congress has exclusive authority to regulate commerce with other countries, which is not overridden by the president's emergency powers.
https://www.japantimes.co.jp/business/2025/05/29/economy/us-trade-court-trump-tariffs/A US Court of International Trade ruling has ordered President Trump's "Liberation Day" tariffs to be vacated, citing they went beyond his legal authority. Former Obama adviser Elie Honig described the decision as a "huge setback" for the administration, stating it pauses and rules illegal many of the existing tariffs.
https://www.rawstory.com/trump-tariffs-2672226142/The US Court of International Trade ruled that President Donald Trump overstepped his authority by instituting reciprocal tariffs on US trading partners. MSNBC's Jonathan Lemire suggested this ruling could be an "off-ramp" for Trump to back off his unpopular trade war policies, but co-host Joe Scarborough stated that Trump doesn't plan to alter course and has been saying he would implement tariffs since 1987.
https://www.rawstory.com/trump-tariff-off-ramp/A three-judge panel ruled that US President Trump's tariffs are unlawful, citing federal law. The decision came in two lawsuits filed by the Liberty Justice Center on behalf of five small businesses and 13 US states, including Oregon Attorney General Dan Rayfield. The companies, such as a New York wine importer and a Virginia-based maker of educational kits, claim the tariffs will harm their business. Trump has claimed broad authority to set tariffs under the International Emergency Economic Powers Act (IEEPA), but the Justice Department says private businesses cannot challenge a national emergency declared by the president.
https://www.ndtv.com/world-news/us-trade-court-blocks-donald-trumps-liberation-day-tariffs-8533353