Wall Street cheered as the U.S. Court of International Trade delivered a stinging rebuke to President Donald Trump’s global tariff spree, ruling he overstepped his authority under emergency economic powers. The Manhattan-based court’s three-judge panel vacated existing tariffs and spiked Trump’s plan for eye-watering hikes—145% on Chinese imports, 50% on the EU—sending futures soaring and the dollar spiking. Gold, predictably, took a dive.
The court didn’t mince words: Trump’s tariff orders, enabled by the International Emergency Economic Powers Act (IEEPA), were deemed an executive overreach. Worse for the White House, the ruling demands refunds for billions in duties already collected—cash that’s long been funneled into federal coffers. “The Tariff Orders are vacated, their operation enjoined,” the court declared, leaving Congress to ponder how to repay funds it’s already spent on pet projects.
The decision caps a flurry of lawsuits from Democratic-led states like Arizona and Oregon, plus a scrappy coalition of small businesses battered by tariff costs. “This halts Trump’s economic wrecking ball,” said Arizona Attorney General Kris Mayes, who led the charge. “Consumers and businesses won’t foot the bill for his trade tantrums.”
The White House, unbowed, filed an appeal faster than you can say “trade war.” A senior official, speaking anonymously, blasted the ruling: “Foreign trade cheats have gutted American workers and our industrial base. This court thinks it can play president, but we’ll fight to put America first.” Expect this to land at the Supreme Court, where Trump’s allies might give him a lifeline.
The ruling is Trump’s biggest legal slap yet, amid challenges to his federal worker purges and budget-slashing bravado. Markets, for now, love the tariff timeout, betting on lower inflation pressures. But don’t pop the champagne: analysts warn a Supreme Court reversal could revive Trump’s tariff dreams, jolting global trade. “This is a pause, not a win,” said Jane Carter, chief economist at Trade Analytics Group. “If Trump gets his way, expect supply chain chaos and price spikes.”
Then there’s the refund mess. With billions in tariffs already spent, Congress faces a fiscal headache that could rattle Treasury markets. “Good luck plugging that hole without new debt,” Carter quipped. The 10-year yield, already twitchy, might not take kindly to the news.
For now, traders are riding the rally, blissfully ignoring the storm brewing. Trump, never one to back down, might see this as fuel to double down on his trade crusade. Markets may cheer today, but they’d be wise to brace for the sequel.
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