The US Court of International Trade has voted to block the implementation of the majority of President Trump's global tariffs after deeming the method used to enact them "unlawful." The White House on Thursday signaled it was considering its options to respond, including a direct appeal to the Supreme Court to keep the tariffs in place while it pursues a formal appeal. Tariffs impacted include the flat-rate "reciprocal" tariffs aimed at US trade partners, as well as key China-focused duties.
The decision leaves some levies intact, specifically those covering steel, aluminum, and certain Chinese goods. Per Bloomberg, the administration is considering pursuing an emergency appeal to the Supreme Court if a federal appeals court does not put the trade court's decision on hold. Administration officials also hinted that the court rulings would not be the final say for a president who has based much of his economic agenda on enacting the tariffs.
On Thursday, Goldman Sachs (GS) highlighted that the trade court rebuke may not derail his plans and outlined how he could pursue the tariffs through other legal methods. “This ruling represents a setback for the administration’s tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners,” chief US political economist Alec Phillips wrote. “For now, we expect the Trump administration will find other ways to impose tariffs.” Meanwhile, US trade negotiations have apparently continued in earnest this week, with an FT report on Wednesday saying India has offered the US steep tariff cuts but is seeking to retain high duties on some agricultural commodities.
India is not the only trading partner seeking a tariff reprieve. On Wednesday, the EU trade chief Maroš Šefčovič said the European Commission is discussing with the US possible cooperation in sectors such as semiconductors, steel, and aerospace. Tariff concerns continue to weigh on corporate America.
Nvidia (NVDA) CEO Jensen Huang said the company plans to manufacture AI chips in the US, but also warned about export controls that limit its ability to ship products to China. This follows Trump's warning that Apple (AAPL) would face 25% tariffs if it failed to move iPhone production to the US. Here are the latest updates as the policy reverberates around the world.
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