Trade Court Blocks Trump’s Tariffs, Sending Stocks Higher
Stocks are higher after the U.S. Court of International Trade invalidated President Donald Trump’s tariffs imposed on more than 100 countries and ordered a permanent stop to the duties.
The court also ruled that the Trump administration cannot make future modifications to the import tariffs that have been imposed on America’s trade partners, including Canada.
The news has the major U.S. stock indices in the green in premarket trading on May 29, with the benchmark S&P 500 index up more than 1%.
In Canada, the Toronto Stock Exchange is up 0.30% in early trading on news that the courts have blocked Trump’s tariffs.
In issuing its ruling, the U.S. Court of International Trade said that Trump overreached in invoking the International Emergency Economic Powers Act to impose the import tariffs.
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President to regulate importation by means of tariffs,” ruled the court.
The Trump administration quickly responded to the ruling by appealing to the U.S. Court of Appeals for the Federal Circuit.
It will likely take some time for the appeals process to play out in the judicial system, say legal experts.
While market watchers say the court ruling on tariffs is positive for stocks, that enthusiasm could be dampened by U.S. Gross Domestic Product (GDP) figures that are due out on May 29.
The GDP data will provide a fresh look at the current state of the American economy.
