From ZeroHedge
The heretofore unkown US Court Of International Trade just ruled President Trump does not have the authority under economic emergency legislation to impose sweeping global tariffs.
“The challenged Tariff Orders will be vacated and their operation permanently enjoined,” the court said, and also ordered that the tariffs which the Trump administration has already collected must be “vacated” meaning that tens of billions in tariffs and excise taxes, and which have already been spent to fund Congressional grift and corruption, now have to – somehow – be refunded! You can’t make this up, but a some liberal judges in some court nobody has ever heard of, just did.
The ruling from a three-judge panel came after several lawsuits arguing Trump has exceeded his authority, left U.S. trade policy dependent on his whims and unleashed economic chaos.
In its decision, the court, which is based in Manhattan and comprised of a panel of three judges, sided with Democratic-led states and a coalition of small businesses that had sued the Trump administration.
“The decision halts the existing IEEPA tariffs. It also stops President Trump from increasing tariffs, including the threatened 145% tariffs on imports from China and 50% tariffs on imports from the European Union,” said Arizona Attorney General Kris Mayes, who led the lawsuit along with the state of Oregon and several other Democratic states.
At least seven lawsuits are challenging the tariffs, the centerpiece of Trump’s trade policy.
The decision marks one of the biggest setbacks for Trump by unelected activist judges amid a wave of lawsuits over executive orders in which he is testing the limits of presidential power. Others are challenging Trump’s mass firings of federal workers, restrictions on birthright citizenship and efforts to slash federal spending already approved by Congress.
The White House has filed a notice of appeal with the US trade court.
“Foreign countries’ nonreciprocal treatment of the Unites States has fueled America’s historic and persistent trade deficits. These deficits have created a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base — facts that the court did not dispute. It is not for unelected judges to decide how to properly address a national emergency. President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness,” said White House Spokesman Kush Desai.
And while this decision is almost certain to be overturned at the Supreme Court, one wonders in the odd chance it is not: how will Congress refund the tens of billions in tariffs already spent on who knows what… and how will the 10Y respond when it learns that there is now a gaping $250BN hole that must be plugged with new debt.
For now, markets – which clearly have no idea what is going on or how this decision will actually be funded – are soaring on the news (extending the post-NVDA euphoria)…
The dollar is surging and gold falling…
… as the market is blissfully unaware that all Trump needed to quadruple down on his market-crushing Liberation Day strategy… was an event just like this.
For those asking, here are the three judges who just overturned Trump’s entire trade agenda: Gary Katzmann, Timothy Reif, Jane Restani.
The full Trade Court ruling can be found here.
Source: https://www.zerohedge.com/geopolitical/futures-soar-federal-trade-court-blocks-trumps-global-tariffs
