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US President Donald Trump is preparing to sign executive orders at the White House Oval Cabinet in Washington, Colombia District, May 23, 2025.
Mandel and | AFP | Gets the image
US president Donald Trump Expected to then find a solution suffer with a great blow to the main part of its economic agenda.
A The court of the US International Trade on Wednesday manage The fact that the president has exceeded its powers by addressing the law on international emergency economic powers (IEEPA) to impose wide tariffs on many countries.
The court, based in Manhattan, ordered to stop the majority of Trump’s tariffs constantly, but also forbade them future changes.
The panel of three judges gave the White House 10 days to complete the official stopping process. Trump administration rapidly appealed against the ruling.
Economists in Goldman Sachs He said there are several tools in the White House that can only provide this temporary problem.
“This resolution is a failure for the administration’s tariff plans and increases uncertainty, but cannot change the end result for most major US trading partners,” Goldman Sachs analysts said in the research note.
“As long as we expect Trump’s administration to find other ways of raising tariffs,” they added.
Parameters on the table
The Bank of Wall -Rate has stated that the ruling blocks of 10% of the base tariff, the Trump on most imports, as well as additional tariffs for China, Canada and Mexico – but not industry tariffs, such as those imposed on steel, aluminum and auto.
According to Goldman, the Trump administration has other legal tariffs. This includes section 122 of the 1974 trade law, section 301 and section 338 of the 1930 trade law.
Section 122 does not require an official investigation, so it can be one of the fastest ways to bypass the block.
“The administration can quickly replace 10% on the home tariffs up to 15% according to sec. 122,” Goldman analysts said. However, they noted that such a step would only last up to 150 days, after which the law requires action in Congress.
Trump can also quickly launch section 301 of the US major trading partners by putting a bureaucratic basis for tariffs, although Goldman said the process would probably take several weeks at least.
Section 232 Tariffs already existing for steel, aluminum and auto air can also be expanded in other sectors, while section 338 allows the president to impose up to 50% of imports from countries that discriminate against
Goldman noted that the latter had not been used before.
What about the Supreme Court?
James Ransdel, a partner of the Cassidy Levy Kent Law Firm, said the court’s opinion notes the first of many other cases that are still calculated – and the first substantial opinion on the federal court, “to truly refer to the plaintiff meat.”
Renzdel said the speed of Trump administration was “very unusual” and believes the government could work at night to prepare its movement for an emergency.
He added that “is definitely possible” that the Supreme Court may end in the last word.
“There is not much precedents in this particular charter and similar actions of the president, so there may be an interest that is taken in the Supreme Court,” said Renzdell CNBC “said”Chinese connection‘Thursday.
Stephen Blitz, US Chief Economist at TS Lombard, said Trump had a “very good” level of understanding how to play in the courts to get what he wants in terms of the game on time.
“The first thing he will probably do is an extraordinary appeal to the Supreme Court … The desire to receive from them the ruling, which mainly says that you can keep these tariffs in place while the appeals pass through,” Blitz said on Thursday.
“This executive order, similar to the king, is at some point going to face in the courts … The difference between the monarchy and the constitutional democracy is the legal system,” he added.
Stocks, US Dollar on the Rise
Stock markets around the world were widely grown on Thursday when investors responded to a legal ruling. Asian-Pacific markets ended the day mostly above and US futures He jumped up.
However, the market reaction in Europe was more muted of the common European Stoxx 600 By mid -morning only 0.2%.
Jordan Rochester, Head of the FICC strategy department in Mizuho EMEA, said the limited market reaction was “because Trump still has different options for raising tariffs.”
“Things are more difficult, but Trump’s ultimate goal remains the same. In politics, if there is a will, there is a way,” he said.
US dollar rose slightly against major competitors, with US dollar index up by 0.14%. So far this year, the dollar index has collapsed up to almost 8% amid long market shocks.
