Court Strikes Down Trump's Tariffs: A Game-Changer for International Trade

A U.S. trade court invalidated most of President Trump's tariffs, ruling that he overstepped his authority by imposing them. The decision cited Congress's exclusive rights to regulate commerce. This ruling affects Trump's trade strategies and creates uncertainty in trade negotiations with major U.S. partners.

A U.S. trade court delivered a significant ruling halting most of President Donald Trump's tariffs, describing his actions as exceeding presidential authority. The court emphasized Congress's exclusive role in commerce regulation, a power the president cannot override. The ruling deems the tariffs invalid, impacting Trump's trade strategies.

Financial markets reacted positively to the ruling, with currencies like the euro and yen weakening against the U.S. dollar and equities showing a surge. Trade court rulings can be appealed and present challenges for Trump's administration, prompting a notice of appeal questioning the court's authority.

The ruling's implications extend to ongoing trade negotiations with entities like the European Union and China. While Trump promised tariffs would bring jobs back to the U.S. by shrinking trade deficits, the ruling forces exploration of slower negotiation approaches, raising uncertainty in the international trade landscape.

(With inputs from agencies.)