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Trump administration files notice of appeal after to federal court blocks tariffs

The appeal is in response to:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect
• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority
• Trump’s tariffs blocked – what we know

• The US dollar is continuing to rocket higher on the tariff-block news

A White House statement:

This article was written by Eamonn Sheridan at www.forexlive.com.

Instead of questioning the ruling a Trump official is attacking the court instead.

If this is the best the US admin can do its a pathetic response.

Miller:

• The judicial coup is out of control

Stephen Miller is Trump’s deputy chief of staff.

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The news so far:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect
• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority
• Trump’s tariffs blocked – what we know

• The US dollar is continuing to rocket higher on the tariff-block news

The USD surged higher on the news. USD/JPY hit highs around 146.00 but its come back a little now:

This article was written by Eamonn Sheridan at www.forexlive.com.

The news:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect
• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority
• Trump’s tariffs blocked – what we know

USD/JPY is up more than a big figure, highs hit circa 146.00.

• USD/CHF is up around 70 points.
• EUR/USD is down nearly a big figure, lows circa 1.1210.

So far we’ve heard nothing from Trump. The ruling can be appealed.

This article was written by Eamonn Sheridan at www.forexlive.com.

The headline is here:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect

USD taken hiugher in response, safe haven (JPY, CHF) the big losers:

• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority

In brief:

• The decision halts implementation of both the 10% baseline tariff and the steeper “reciprocal tariffs.”

• It could undercut the Trump administration’s approach of using tariffs as a bargaining chip in trade negotiations, potentially reducing its leverage.

• The ruling pushes back on the Trump administration’s justification under the International Emergency Economic Powers Act of 1977, asserting that “trade deficits do not constitute a ‘unusual and extraordinary threat.’”

So far, no response from TACO man. I’m expecting angry tweets. Note that Trump can (and will!) appeal this decision.

This article was written by Eamonn Sheridan at www.forexlive.com.

Fox with the report ICYMI, citing Austrian officials contradicting the assessment of the U.S. Office of the Director of National Intelligence (ODNI)

• Austria’s version of the FBI — the Federal Office for the Protection of the Constitution — wrote Monday in an intelligence report, “In order to assert and enforce its regional political power ambitions, the Islamic Republic of Iran is striving for comprehensive rearmament, with nuclear weapons to make the regime immune to attack and to expand and consolidate its dominance in the Middle East and beyond.”

This article was written by Eamonn Sheridan at www.forexlive.com.

Here’s the news as it broke:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect

This is potentially big news. Trump is not going to like this and I suspect he’ll do whatever he can to ignore the ruling/get around it. Note, Trump can appeal this ruling.

Markets responding to the news though, taking the USD higher against safe have yen and CHF and also EUR.

Meanwhile, US equity index futures onGlobex are surging.

Yen, EUR, CHF lower (other major FX also to varying extents)

This article was written by Eamonn Sheridan at www.forexlive.com.

A U.S. federal court on Wednesday
blocked Trump’s “Liberation Day” tariffs from
going into effect.

The United States Court of International Trade is a U.S. federal court that adjudicates civil actions arising out of U.S. customs and international trade.

• ruled that Trump overstepped his
  authority by imposing across-the-board taxes on imports from
  nations that sell more to the United States than they buy

Info via Reuters.

Will this stop Trump? He has openly defied courts on other issues.

This article was written by Eamonn Sheridan at www.forexlive.com.

U.S. pauses exports of jet engine technology and chip software to China – New York Times

This article was written by Eamonn Sheridan at www.forexlive.com.

US Secretary of State Rubio

• US will begin revoking visas of Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields.
• Will also revise visa criteria to enhance scrutiny of all future visa applications from the People’s Republic of China and Hong Kong

This article was written by Eamonn Sheridan at www.forexlive.com.

Germany’s Vice Chancellor and Finance Minister Lars Klingbeil announced an almost a 50% increase vs the previous year:

• to invest 110B euros in 2025
• intent is to revive the country’s sluggish economy
• planned measures are proposals to lower energy prices for industrial companies and the introduction of special tax depreciation options for firms that invest in Germany
• Klingbeil : “We have to turn the mood around now”

This article was written by Eamonn Sheridan at www.forexlive.com.

• Major US stock indices close lower ahead of Nvidia earnings
• Economic calendar Asia Thursday, May 29, 2025, more from the Reserve Bank of New Zealand
• Trump orders US chip designers to stop selling to China
• Iran denies report of temporarily suspending nuclear enrichment
• US crude oil futures settle at $61.84
• FOMC minutes May 2025: Fed well positioned to wait for more clarity on inflation/economy
• ECB’s Villeroy: Does not see inflation picking up in Europe
• US treasury auctions off $70 billion of 5-year notes at a high yield of 4.071%
• Trump: Can’t tell if Putin wants to end the war
• Iran may agree to pause nuclear enrichment work temporarily, if…..
• Major European indices close the day lower. German Dax backs off record close level.
• ECBs Knot: Near term growth and inflation risks are to the downside.
• Fed Survey (from 2024):73% of Americans said they were doing ok or comfortable financially
• OPEC reaffirms the level of overall crude oil production for OPEC/non-OPEC countries
• US Dallas Fed Services Revenue for May -4.7 v 3.8 last month
• Richmond Fed Manufacturing index for May -9 versus -9 expected
• BMW, Mercedes, Volkswagen in talks with US trade minister
• EU Trade Commissioner: We are in constant conversation with the US
• EU and UAE has launched talks for a trade deal.
• China’s Vice Premier He Lifeng: Welcomes US financial institutions to deepen cooperation
• White House CEO Chair Miran: Canada is anxious for a trade deal with the US
• The USD has seen up & down price action w/ technical levels defining support & resistance
• ForexLive European FX news wrap: Major currencies subdued in quiet trading
• US MBA mortgage applications w.e. 23 May -1.2% vs -5.1% prior
• Bitcoin is back at the key trendline. Another bounce or break?

The USD was mostly higher in trading today. Yields moved higher with the 2 and 10-year each up 4.3 basis points to 3.992% and 4.475% respecitively. The 30-year rose 3.3 basis points to 4.972%.

The economic calendar was light with the Richmond Fed index for May coming in at -9 vs -13 last month (expected -9). Although better, it is still in contractionary territory.

The minutes from the Federal Reserve’s May 6–7 meeting reveal that Fed staff now view a recession as “almost as likely” as their baseline forecast, marking a more cautious economic outlook than in March. The shift in tone reflects growing concerns over the effects of U.S. trade policy, particularly President Trump’s tariffs, which are expected to boost inflation in the near term and drag on productivity and GDP growth. Staff forecasts now show inflation not returning to the Fed’s 2% target until 2027, with unemployment projected to rise later this year and remain elevated through that same period. Real GDP growth for 2025 and 2026 is also expected to slow, widening the output gap and placing the economy in what some analysts are calling “stagflationary territory.”

Despite these concerns, Fed officials held the federal funds rate steady at 4.25%–4.50%, citing heightened uncertainty and the need to assess the full impact of evolving government policies. Policymakers acknowledged that they may face difficult trade-offs if inflation proves more persistent while growth and employment weaken. Fed Chair Jerome Powell has previously noted that tariffs could complicate efforts to restore price stability. Notably, there was no internal dissent over the decision to keep rates unchanged—something that surprised market participants expecting more pushback given the current economic strain.

Officials also highlighted recent financial market volatility, including a sharp rise in long-term Treasury yields, falling stock prices, and a weaker dollar in April. Some warned that if U.S. assets are increasingly perceived as less of a safe haven, the shift could have lasting implications for financial stability and economic growth. While the Fed minutes did not address the topic of central bank independence—despite past criticism of Powell by President Trump—they underscore the delicate position the central bank faces as it tries to balance inflation control with rising economic and political uncertainty.

Markets, meanwhile, continue to price in two rate cuts for the second half of the year, a stance that was unchanged by the release of these minutes. Although the near-term policy outlook remains steady, the Fed’s evolving forecasts and the intensifying impact of trade policy suggest that the central bank’s path ahead could become increasingly complex and politically fraught.

Stocks fell modestly but closed near lows of the day ahead of Nvidia and Salesforce earnings. Both beat expectations but Salesforce shares area trading down modestly by -0.35%. Nvidia shares are higher by 3.75%.

The final numbers for the major indices are showing;

• Dow Industrial average -244.95 points or -0.58% at 42098.70.
• S&P index fell -32.99 points or -0.56% at 5888.55
• Nasdaq fell -98.22 points or -0.51% at 19100.94.

In other markets:

• Crude oil rose $0.92 or 1.53% at $61.82
• Gold fell -$6.59 at $3294
• Bitcoin is trading at $107,383

This article was written by Greg Michalowski at www.forexlive.com.

This data is a day later than usual this week due to the holiday Monday in the US.

Via oilprice.com:

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Expectations I had seen centred on:

• Headline crude +1mn barrels
• Distillates +1.3mn bbls
• Gasoline -0.5 mn

This data point is from a privately-conducted survey by the American Petroleum Institute (API).

• It’s a survey of oil storage facilities and companies
• The official report is due Wednesday morning US time.

The two reports are quite different.The official government data comes from the US Energy Information Administration (EIA)

• Its based on data from the Department of Energy and other government agencies
• Whereas information on total crude oil storage levels and variations from the previous week’s levels are both provided by the API report, the EIA report also provides statistics on inputs and outputs from refineries, as well as other significant indicators of the status of the oil market, and storage levels for various grades of crude oil, such as light, medium, and heavy.
• the EIA report is held to be more accurate and comprehensive than the survey from the API

This article was written by Eamonn Sheridan at www.forexlive.com.