Convoluted

Yesterday, a federal court blocked Trump's "Liberation Day" tariffs, ruling he exceeded his authority under the 1977 IEEPA, as trade deficits aren't an emergency. Tariffs, 10-54% on imports, aimed to reduce trade deficits but were deemed unconstitutional. Of course, President Trump will appeal the decision and will likely go to the Supreme Court, where, if found unconstitutional, the U.S. might have to return payments to exporters, including China. Will they still sit at the negotiating table knowing that the U.S. has no leverage with tariffs? What happens to the OBBB that was counting on tariffs to offset the increase in deficit? The markets rallied after that news, focusing on the fact that some uncertainty may have been eliminated. But, is that really the case? Isn’t it more convoluted now where we have an internal fight between legislative and executive powers at a time when the U.S. desperately needs the income? What is the definition of an emergency, applicable to this case? How come no judge said anything in 2017?

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