President Donald Trump's Tariffs

President Donald Trump's Tariffs:

In a landmark decision on May 28, 2025, the U.S. Court of International Trade struck down former President Donald Trump's "Liberation Day" tariffs, ruling that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA) of 1977. The court determined that the sweeping tariffs, which included a 10% baseline on most imports and higher rates on goods from countries with significant trade surpluses, were an overreach of executive power and lacked proper congressional authorization.

The ruling has had immediate effects on financial markets. Major U.S. stock indices, including the S&P 500 and Nasdaq-100, saw futures rise more than 1%, with technology stocks leading the gains. The U.S. dollar also strengthened against major currencies like the euro and yen. Analysts attribute this positive market response to the removal of trade uncertainties and the reinforcement of constitutional checks on executive power.

In the cryptocurrency sector, Bitcoin experienced a modest uptick, trading around $108,000, as investors viewed the court's decision as a reduction in economic uncertainty. While the immediate impact on crypto markets was limited, the ruling is seen as a positive signal for risk assets, potentially paving the way for further gains if economic stability continues to improve.

The Trump administration has filed an appeal against the court's decision, indicating that the legal battle over the tariffs may continue. However, the court's ruling sets a significant precedent, emphasizing the importance of legislative oversight in trade policy and potentially reshaping the landscape of U.S. economic strategy moving forward.