From Trump's Tariff-Postpone-Repeat to Court's Cease-and-Desist

In imposing his tariffs in early April, President Donald Trump called the trade deficit a national emergency that justified his doing so. This evening, the Manhattan-based Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the US economy. "The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it," a three-judge panel said in the decision. The Trump administration minutes later filed a notice of appeal.

Stock futures surged on the court's ruling as well as on Nvidia's strong earnings report after the market closed. The 10-year US Treasury yield remained around 4.50% this evening. The Dollar Index (DXY) firmed and the price of gold slipped.