Trump’s tariffs blocked – what we know

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.