Trump's Tariffs and Possible Trade War

[CrimsonJazz]

Trump is the bully at the bar with the .357 he keeps waving around but will never pull the trigger.

Eventually - the whole room figures out he isn't going to pull the trigger and destroys him.

That's a pretty labored metaphor, but I'll take it.

 

[Huckleberry]

https://thehill.com/homenews/administration/5322889-court-rules-trump-tariffs/

Court of International Trade blocks Trump’s tariffs in sweeping ruling

A federal court ruled Wednesday that an emergency law does not provide President Trump with unilateral authority to impose tariffs on nearly every country, blocking a series of tariff announcements dating back to February that have rattled financial markets.

The three-judge panel on the U.S. Court of International Trade unanimously ruled Congress did not delegate “unbounded” tariff authority to the president in the International Emergency Economic Powers Act of 1977 (IEEPA), the linchpin of Trump’s legal defense.

“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power to another branch of government,” the court wrote in its unsigned opinion.

“Regardless of whether the court views the President’s actions through the nondelegation doctrine, through the major questions doctrine, or simply with separation of powers in mind, any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional,” the opinion continued.

“The IEEPA authorizes the president to impose necessary economic sanctions during an emergency to combat an “unusual and extraordinary threat.”

 

[TIDE-HSV]

https://thehill.com/homenews/administration/5322889-court-rules-trump-tariffs/

Court of International Trade blocks Trump’s tariffs in sweeping ruling

A federal court ruled Wednesday that an emergency law does not provide President Trump with unilateral authority to impose tariffs on nearly every country, blocking a series of tariff announcements dating back to February that have rattled financial markets.

The three-judge panel on the U.S. Court of International Trade unanimously ruled Congress did not delegate “unbounded” tariff authority to the president in the International Emergency Economic Powers Act of 1977 (IEEPA), the linchpin of Trump’s legal defense.

“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power to another branch of government,” the court wrote in its unsigned opinion.

“Regardless of whether the court views the President’s actions through the nondelegation doctrine, through the major questions doctrine, or simply with separation of powers in mind, any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional,” the opinion continued.

“The IEEPA authorizes the president to impose necessary economic sanctions during an emergency to combat an “unusual and extraordinary threat.”

The president stopped reading after the 2nd Amendment, which he interpreted as meaning "I can do anything I want to do"...

 

[CrimsonNagus]

https://thehill.com/homenews/administration/5322889-court-rules-trump-tariffs/

Court of International Trade blocks Trump’s tariffs in sweeping ruling

A federal court ruled Wednesday that an emergency law does not provide President Trump with unilateral authority to impose tariffs on nearly every country, blocking a series of tariff announcements dating back to February that have rattled financial markets.

The three-judge panel on the U.S. Court of International Trade unanimously ruled Congress did not delegate “unbounded” tariff authority to the president in the International Emergency Economic Powers Act of 1977 (IEEPA), the linchpin of Trump’s legal defense.

“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power to another branch of government,” the court wrote in its unsigned opinion.

“Regardless of whether the court views the President’s actions through the nondelegation doctrine, through the major questions doctrine, or simply with separation of powers in mind, any interpretation of IEEPA that delegates unlimited tariff authority is unconstitutional,” the opinion continued.

“The IEEPA authorizes the president to impose necessary economic sanctions during an emergency to combat an “unusual and extraordinary threat.”

Finally, someone in the government is trying to hold this corrupt administration accountable to the law. It should have been Congress, but they are idiots.

 

[TIDE-HSV]

Finally, someone in the government is trying to hold this corrupt administration accountable to the law. It should have been Congress, but they are idiots.

What fascinates me is that there is, if you believe their past remarks, there is a strong anti-delegation sentiment (the corollary is anti-independent federal agency) on the court. So, the SCOTUS is caught in an ideological Catch-22, because that's exactly what the issue is here - improper use of delegated emergency powers. If they're consistent, then they must uphold the lower courts...

 

[jthomas666]

What fascinates me is that there is, if you believe their past remarks, there is a strong anti-delegation sentiment (the corollary is anti-independent federal agency) on the court. So, the SCOTUS is caught in an ideological Catch-22, because that's exactly what the issue is here - improper use of delegated emergency powers. If they're consistent, then they must uphold the lower courts...

The only thing the Roberts court has been consistent about is an inexorable move towards an imperial presidency.

You've got 1-2 justices who might do the right thing on minor cases. Might.
You've got 2 justices who will whatever the hell they feel like, constitution, precedent, or their own statements be damned.
You've got one justice who doesn't seem to care that much unless Native Americans are involved.
One justice who likes beer.
Three justices who seem to be having a competition as to who can plug the most holes in the dike. Unfortunately, since the water level is now wel above all three, it's hard to identify a winner.

 

[crimsonaudio]

Federal court keeps Trump tariffs in place — for now

The U.S. Court of Appeals for the Federal District on Thursday granted the Trump administration's request to temporarily put on hold the New York-based Court of International Trade judgment that struck down President Trump's tariffs a day earlier.

The court stayed the order while the legal proceedings play out.

The plaintiffs — a group of U.S. states and small businesses — were asked to respond to the Trump administration's motions for a stay by June 5. A U.S. government response may be filed by June 9, the court said.

 

[JDCrimson]

You might want to curb your enthusiasm. A US Appeals Court overruled the US Trade Court over Trump's tariff policy today...

Finally, someone in the government is trying to hold this corrupt administration accountable to the law. It should have been Congress, but they are idiots.

 

[CrimsonJazz]

You might want to curb your enthusiasm. A US Appeals Court overruled the US Trade Court over Trump's tariff policy today...

And unless I’m mistaken, that’s the second time.

 

[selmaborntidefan]

https://thehill.com/homenews/administration/5320263-trump-tariff-trades-markets-rise/

What is the ‘TACO trade’ on Wall Street?

There’s a new trade on Wall Street: the TACO trade, standing for “Trump Always Chickens Out.”

The term was coined by Robert Armstrong, a writer for the Financial Times, and is intended to capture how markets have fallen on Trump’s vow to impose steep tariffs on imports to the United States and then jump back up when Trump announces pauses on those tariffs.

 

[TIDE-HSV]

You might want to curb your enthusiasm. A US Appeals Court overruled the US Trade Court over Trump's tariff policy today...

As I said, this case lands squarely on the tension point between two beloved principles of several on the court - between wanting to serve their "unitary executive" and "anti-delegation" policies. Hoist on their own petard...

 

[2003TIDE]

https://www.axios.com/2025/06/04/trump-tariffs-prices

 

[Huckleberry]

https://twitter.com/i/web/status/1938221314977751432

The nation's trade deficit widened to $96.6 billion last month -- up 11.1% from April. Imports and exports both fell in May, but exports fell more.

 

[Huckleberry]

https://twitter.com/i/web/status/1949466243267997709

Lutnick vows that Trump is done tacoing: "No extensions. No more grace periods. August 1, the tariffs are set. They'll go into place."

 

[Bamaro]

https://twitter.com/i/web/status/1949466243267997709

Lutnick vows that Trump is done tacoing: "No extensions. No more grace periods. August 1, the tariffs are set. They'll go into place."

There will be no more externsions until there are.

 

[Bazza]

President Donald Trump and European Commission President Ursula Von Der Leyen finalised the deal during talks at one of Trump's golf courses in Scotland. The agreement will see a blanket 15 per cent tariff on all European goods imported into the US. Donald Trump says the deal will benefit both sides of the Atlantic.

====================

Trump strikes ‘biggest deal ever made’ with EU: Europeans will buy $750M in US energy, invest $600B after meeting with prez

Europe agreed to buy $750 billion in American energy products, invest $600 billion in new money in the US and purchase additional US military equipment, according to the terms of the preliminary agreement.

Tariffs on many American exports will drop to zero. Duties on most European goods coming into the US rise to 15%.

Trump strikes ‘biggest deal ever made’ with EU: Europeans will buy $750B in US energy, invest $600B after meeting with prez

Trump announced the deal a short time after his meeting with European Union Commission President Ursula von der Leyen at Trump Turnberry.

nypost.com

==================

Remember when Trump said EU should get their energy from USA and not Russia and the EU laughed at him.

EU had a tariff of 10% on American cars and many other products for decades and no one cared.

The art of the deal.......

 

[TIDE-HSV]

I hate to say it, but Trump is basically right about the trade situation. The fact of the matter is that other countries have gotten away with taking advantage of the US for decades. Our attitude has been that, having the world's reserve currency, we could afford it. That is now a pretense. We can't afford it. His view is simplistic. Trade imbalances are not where the harm is. Market hindrance or downright closure is much more important. And, some of our "best" allies, Japan, for example, have been the worst at it. Tariffs are probably the worst tool, because, despite Trump's fiction, the burden falls on the American public, in a regressive way. OTOH, maybe it took a blunt instrument to get our trade partners' attention. They "liked" Biden. They seem to genuinely fear Trump and what he might do. Of course, the ideal would be the gradual lowering of all tariffs and open markets everywhere, a utopia which will never be reached. Another aspect where Trump's views are simplistic is thinking markets are moved by money alone, a natural mistake for him to make. Australians are not going to rush out and buy US beef. For one thing, they're in the midst of a historic drought and cattle are being slaughtered by the millions, because of lack of water. Their prices are a fraction of ours. In the cases of both Japan and Germany, there is a strong prejudice in favor of buy local. When the EU required that country of origin be taken off goods, there was a revolt in Germany. They wanted "Made in Germany" on their purchases. It's very similar in Japan. For now, the jury's out...

 

[CrimsonJazz]

I hate to say it, but Trump is basically right about the trade situation. The fact of the matter is that other countries have gotten away with taking advantage of the US for decades. Our attitude has been that, having the world's reserve currency, we could afford it. That is now a pretense. We can't afford it. His view is simplistic. Trade imbalances are not where the harm is. Market hindrance or downright closure is much more important. And, some of our "best" allies, Japan, for example, have been the worst at it. Tariffs are probably the worst tool, because, despite Trump's fiction, the burden falls on the American public, in a regressive way. OTOH, maybe it took a blunt instrument to get our trade partners' attention. They "liked" Biden. They seem to genuinely fear Trump and what he might do. Of course, the ideal would be the gradual lowering of all tariffs and open markets everywhere, a utopia which will never be reached. Another aspect where Trump's views are simplistic is thinking markets are moved by money alone, a natural mistake for him to make. Australians are not going to rush out and buy US beef. For one thing, they're in the midst of a historic drought and cattle are being slaughtered by the millions, because of lack of water. Their prices are a fraction of ours. In the cases of both Japan and Germany, there is a strong prejudice in favor of buy local. When the EU required that country of origin be taken off goods, there was a revolt in Germany. They wanted "Made in Germany" on their purchases. It's very similar in Japan. For now, the jury's out...

I agree. The trade imbalances have been in place for a long time now. The longer they stayed in place, the more it was going to hurt when someone decided to finally do something. We can dream of a gradual lowering of tariffs until they are eliminated altogether, but like you, I don't see it happening.

Of particular interest was your observation about the prejudice of buying local. I completely understand and totally back such behavior for ourselves. I would love nothing more to see more manufacturing return to the U.S. However, the idea that we can handle enough of it to prop up our consumer demand also feels like a pipe dream.

 

[Bamaro]

I hate to say it, but Trump is basically right about the trade situation.

He's been right about a few things but usually seems clueless about proper solutions.

 

[Bamabuzzard]

I hate to say it, but Trump is basically right about the trade situation. The fact of the matter is that other countries have gotten away with taking advantage of the US for decades. Our attitude has been that, having the world's reserve currency, we could afford it. That is now a pretense. We can't afford it. His view is simplistic. Trade imbalances are not where the harm is. Market hindrance or downright closure is much more important. And, some of our "best" allies, Japan, for example, have been the worst at it. Tariffs are probably the worst tool, because, despite Trump's fiction, the burden falls on the American public, in a regressive way. OTOH, maybe it took a blunt instrument to get our trade partners' attention. They "liked" Biden. They seem to genuinely fear Trump and what he might do. Of course, the ideal would be the gradual lowering of all tariffs and open markets everywhere, a utopia which will never be reached. Another aspect where Trump's views are simplistic is thinking markets are moved by money alone, a natural mistake for him to make. Australians are not going to rush out and buy US beef. For one thing, they're in the midst of a historic drought and cattle are being slaughtered by the millions, because of lack of water. Their prices are a fraction of ours. In the cases of both Japan and Germany, there is a strong prejudice in favor of buy local. When the EU required that country of origin be taken off goods, there was a revolt in Germany. They wanted "Made in Germany" on their purchases. It's very similar in Japan. For now, the jury's out...

It just burns me up that our leaders continued to get us into deal after deal that we were losing money on. Anyone with walking around sense would know that at some point that has a negative impact on our country and citizens. Yet we've been doing it for years.