Last night, your humble editor received a Wall Street Journal alert stating that a federal court overturned President Trump’s sweeping tariffs.
In a landmark ruling, the U.S. Court of International Trade declared that Trump did not have the legal authority to impose broad tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The court’s decision effectively nullifies a range of tariffs that had disrupted global trade and unsettled economic markets.
The Journal reported that the three-judge panel rejected the administration’s claim of “unbounded authority” under IEEPA. They found that citing the U.S. trade deficit as a national emergency did not meet the law’s standards.
Trump introduced the tariffs, targeting nearly every U.S. trading partner. His administration cited fentanyl smuggling and trade imbalances as justifications. However, the court ruled that such sweeping action amounted to an unconstitutional transfer of legislative power from Congress to the executive branch.
When the news broke, I immediately checked the markets. Futures surged. The Nasdaq climbed 2% in after-hours trading. Apple gained $7.10, and Acuity Brands rose $3.29. These moves suggest investors, and the lighting industry, are hopeful that the decision could ease tensions in global trade.
The ruling also prompted sharp political responses. New York Attorney General Letitia James, quoted in the Journal, praised the court’s decision: “The president cannot ignore the Constitution and impose massive tax hikes on the American people.”
This decision not only marks a major legal setback for the administration’s trade agenda but could also reset the tone for upcoming negotiations with key U.S. allies.
Go Deeper:
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Tariff Pause Triggers Shipping Surge