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World financial markets welcome court ruling against Trump's tariffs
Court News |
2025/05/29 07:23
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Financial markets welcomed a U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.
U.S. futures jumped early Thursday and oil prices rose more than $1. The U.S. dollar rose against the yen and euro.
The court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorize the use of tariffs.
The White House immediately appealed and it was unclear if Trump would abide by the ruling in the interim. The long term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Trump's trade war.
The future for the S&P 500 was up 1.5% while that for the Dow Jones Industrial Average gained 1.2%.
In early European trading, Germany's DAX gained 0.5% to 24,160.75. The CAC 40 in Paris jumped 0.9% to 7,860.67. Britain's FTSE was nearly unchanged at 8,722.63.
Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos.
A U.S. Customs and Border Protection technician examines overseas parcels after they were scanned at the agency's overseas mail inspection facility at Chicago's O'Hare International Airport on Feb. 23, 2024.
The ruling also pushed the dollar sharply higher against the Japanese yen. It was trading at 145.40 yen early Thursday, up from 144.87 yen late Wednesday.
A three-judge panel ruled on several lawsuits arguing Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy.
Many of Trump's double-digit tariff hikes are paused for up to 90 days to allow time for trade negotiations, but the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead.
"Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a commentary.
The ruling was, at the least, "a brief respite before the next thunderclap," he said.
Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45.
Australia's S&P/ASX 200 gained 0.2% to 8,409.80.
In South Korea, which like Japan relies heavily on exports to the U.S., the Kospi surged 1.9% to 2,720.64. Shares also were helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy.
Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%.
On Wednesday, U.S. stocks cooled, with the S&P 500 down 0.6% but still within 4.2% of its record after charging higher amid hopes that the worst of the turmoil caused by Trump's trade war may have passed. It had been roughly 20% below the mark last month.
The Dow industrials lost 0.6% and the Nasdaq composite fell 0.5%.
Trading was relatively quiet ahead of a quarterly earnings release for Nvidia, which came after markets closed.
The bellwether for artificial intelligence overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth thanks to feverish demand for its high-powered chips that are making computers seem more human. Nvidia's shares jumped 6.6% in afterhours trading.
Like Nvidia, Macy's stock also swung up and down through much of the day, even though it reported milder drops in revenue and profit for the latest quarter than analysts expected. Its stock ended the day down 0.3%.
The bond market showed relatively little reaction after the Federal Reserve released the minutes from its latest meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. The central bank has been holding off on cuts to interest rates, which would give the economy a boost, amid worries about inflation staying higher than hoped because of Trump's sweeping tariffs. |
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Supreme Court could block Trump’s birthright citizenship order
Court News |
2025/05/15 11:59
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The Supreme Court seemed intent Thursday on keeping a block on President Donald Trump’s restrictions on birthright citizenship while looking for a way to scale back nationwide court orders.
It was unclear what such a decision might look like, but a majority of the court expressed concerns about would happen if the Trump administration were allowed, even temporarily, to deny citizenship to children born to people who are in the United States illegally.
The justices heard arguments in the Trump administration’s emergency appeals over lower court orders that have kept the citizenship restrictions on hold across the country. Nationwide, or universal, injunctions have emerged as an important check on Trump’s efforts to remake the government and a mounting frustration to the Republican president and his allies.
Judges have issued 40 nationwide injunctions since Trump began his second term in January, Solicitor General D. John Sauer told the court at the start of more than two hours of arguments.
Birthright citizenship is among several issues, many related to immigration, that the administration has asked the court to address on an emergency basis.
The justices are also considering the Trump administration’s pleas to end humanitarian parole for more than 500,000 people from Cuba, Haiti, Nicaragua and Venezuela and to strip other temporary legal protections from another 350,000 Venezuelans. The administration remains locked in legal battles over its efforts to swiftly deport people accused of being gang members to a prison in El Salvador under an 18th century wartime law called the Alien Enemies Act.
Trump signed an executive order on the first day of his second term that would deny citizenship to children who are born to people who are in the country illegally or temporarily.
The order conflicts with a Supreme Court decision from 1898 that held that the Citizenship Clause of the 14th Amendment made citizens of all children born on U.S. with narrow exceptions that are not at issue in this case.
States, immigrants and rights group sued almost immediately, and lower courts quickly barred enforcement of the order while the lawsuits proceed. The court’s liberal justices seemed firmly in support of the lower court rulings that found the changes to citizenship that Trump wants to make would upset the settled understanding of birthright citizenship that has existed for more than 125 years.
Birthright citizenship is an odd case to use to scale back nationwide injunctions, Justice Elena Kagan said. “Every court has ruled against you,” she told Sauer.
But if the government wins on today’s arguments, it could still enforce the order against people who haven’t sued, Kagan said. “All of those individuals are going to win. And the ones who can’t afford to go to court, they’re the ones who are going to lose,” she said
Several conservative justices who might be open to limiting nationwide injunctions also wanted to know the practical effects of such a decision as well as how quickly the court could reach a final decision on the Trump executive order. |
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Judge to weigh Louisiana AG’s challenge to city jail’s ‘sanctuary’ policy
Court News |
2025/04/30 06:52
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Louisiana Attorney General Liz Murrill is pushing forward with her efforts to force Orleans Parish Sheriff Susan Hutson to drop a longtime policy that generally prohibits deputies from directly engaging in federal immigration enforcement within the city’s jail.
In legal filings, Murrill claims that the policy — which the state characterizes as a so-called “sanctuary city” policy — is in direct conflict with a newly passed state law that requires state and local law enforcement agencies to cooperate with federal immigration agencies.
“The consent decree now sits fundamentally at odds with state law as applicable to immigration detainers,” Murrill said in court documents filed Friday.
A federal court will now determine whether to allow the state of Louisiana to join a 2011 federal suit that resulted in the policy and whether to throw out the policy altogether. A hearing has been set for April 30.
The state’s campaign against “sanctuary” policies comes as President Donald Trump is pushing local law enforcement agencies to join the federal government in his promised immigration crackdown. Since his inauguration, Trump has ordered the U.S. Department of Homeland Security to push for more partnerships between local law enforcement units and federal immigration agencies. A few have already signed up. Louisiana Gov. Jeff Landry, a longtime immigration hardliner and Trump ally, has worked with Republican lawmakers in the state to enact laws that encourage those collaborations.
As attorney general, Landry criticized a policy adopted by the New Orleans Police Department, under a long-running federal consent decree that blocks officers from enforcing immigration laws.
Neither Murrill’s office nor representatives for U.S. Immigration and Customs Enforcement responded to requests for comment.
In court filings, Murrill said Hutson “does not oppose the (state’s) intervention” in the case.” But a spokesperson for Hutson said that’s not exactly true. “It’s more accurate that we take no position regarding the state intervention,” a Sheriff’s Office spokesperson said in an emailed statement on Wednesday.
While she has not taken a position for or against increased collaboration with ICE, in an interview with Fox 8 in December, Hutson noted that the jail’s resources were far too stretched to take on immigration enforcement.
The sheriff’s policy stems from a 2013 federal court settlement in a civil rights case involving two New Orleans construction workers picked up on minor charges in 2009 and 2010. Mario Cacho and Antonio Ocampo sued after they were allegedly illegally held in the city’s jail past the completion of their sentences. The two were held at the request of U.S. Immigration and Customs Enforcement. The agency issues such “detainer” requests to local law enforcement agencies, asking them to hold onto arrestees who are suspected of immigration violations. Local agencies are only supposed to honor the hold requests for 48 hours, after which they should let detainees free. But in 2009 and 2010, then-Sheriff Marlin Gusman detained Cacho and Ocampo for months, according to legal filings in their case against the office.
Ocampo and Cacho settled the case with the Sheriff’s Office in 2013, and Gusman agreed to adopt a new policy on immigration investigations. The resulting policy blocks the agency from investigating immigration violations and from detaining immigrants for ICE without a court order, except in certain cases where they are facing charges for a small number of serious violent crimes.
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Judge blocks parts of Trump’s overhaul of US elections
Court News |
2025/04/25 07:59
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A judge on Thursday blocked the Trump administration from immediately enacting certain changes to how federal elections are run, including adding a proof-of-citizenship requirement to the federal voter registration form.
The decision is a setback for President Donald Trump, who has argued the requirement is needed to restore public confidence in elections. But the judge allowed other parts of Trump’s sweeping executive order on U.S. elections to go forward for now, including a directive to tighten mail ballot deadlines around the country.
Trump’s March executive order overhauling how U.S. elections are run prompted swift lawsuits from the League of United Latin American Citizens, the League of Women Voters Education Fund, the Democratic National Committee and others, who called it unconstitutional.
U.S. District Judge Colleen Kollar-Kotelly in Washington sided with voting rights groups and Democrats, saying that the Constitution gives the power to regulate federal elections to states and Congress — not the president. She noted federal lawmakers are currently working on their own legislation to require proof of citizenship to vote.
In a 120-page decision on Thursday, she said the plaintiffs had proven that the proof-of-citizenship requirement would cause their clients irreparable harm and go against the public interest, while the government had offered “almost no defense of the President’s order on the merits.”
Accordingly, she granted a preliminary injunction to stop the citizenship requirement from moving forward while the lawsuit plays out.
The judge also blocked part of the Republican president’s order requiring public assistance enrollees to have their citizenship assessed before getting access to the federal voter registration form.
But she denied other requests from a group of Democratic plaintiffs, including refusing to block Trump’s order to require all mailed ballots to be received by Election Day nationwide. She also did not touch Trump’s order to open certain databases to billionaire Elon Musk’s Department of Government Efficiency to allow it to review state voter lists to search for noncitizens. The judge said those arguments brought by Democrats were either premature or should be brought by states instead.
The plaintiffs had argued Trump’s proof-of-citizenship requirement violated the Constitution’s so-called Elections Clause, which gives states and Congress the authority to determine how elections are run.
They also argued that Trump’s order asserts power that he does not have over an independent agency. That agency, the U.S. Election Assistance Commission, sets voluntary voting system guidelines and maintains the federal voter registration form. |
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Trump says he’s in ‘no rush’ to end tariffs as he meets with Italy’s Meloni
Court News |
2025/04/18 07:50
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President Donald Trump said Thursday he is in “no rush” to reach any trade deals because he views tariffs as making the United States wealthy. But he suggested while meeting with Italian Premier Giorgia Meloni that it would be easy to find an agreement with the European Union and others.
Trump played down the likelihood of an accelerated timeline to wrap up deals, saying other countries “want to make deals more than I do.”
“We’re in no rush,” said Trump, hinting he has leverage because other countries want access to U.S. consumers.
Even though Trump has a warm relationship with Meloni, she was unable in their meeting to change his mind on tariffs.
“No, tariffs are making us rich. We were losing a lot of money under Biden,” Trump said of his predecessor, Democrat Joe Biden. “And now that whole tide is turned.”
Trump is convinced that his devotion to tariffs will yield unprecedented wealth for his country even as the stock market has dropped, interest on U.S. debt has risen and CEOs are warning of price increases and job losses in what increasingly looks like a threat to the existing structure of the world economy.
A bond market panic was enough for Trump to partially pull back on his tariffs, causing him to pause his 20% import taxes on the EU for 90 days and charge a baseline 10% instead. Meloni’s visit showed the challenge faced even by leaders who enjoy a rapport with Trump.
After they met, Trump told reporters that trade talks were easier than other business negotiations such as mergers. He said he had spoken with Chinese officials about tariffs “a lot” and the amount of his import taxes could be influenced by China approving a sale of the social media site TikTok. He also seemed to contradict his previous statement Thursday morning about being in no rush to make trade deals “over the next three or four weeks.”
Even then, Trump showed no interest in fully severing his tariffs. “Tariff negotiations are actually simpler than everyone has said,” Trump said. “A number of people are going to pay that number or they’re going to decide to go elsewhere if there is such a place. There really is no elsewhere.”
Meloni had, in a sense, been “knighted” to represent the EU at a critical juncture in the fast-evolving trade war that has stoked recession fears. The U.S. administration has belittled its European counterparts for not doing enough on national security while threatening their economies with tariffs, sparking deep uncertainty about the future of the trans-Atlantic alliance.
She sought to portray the U.S. and Europe as natural allies in Western civilization and said it was important to “try to sit down and find solution” to tensions over trade and national security.
The EU is defending what it calls “the most important commercial relationship in the world,’’ with annual trade with the U.S. totaling 1.6 trillion euros ($1.8 trillion). It was unclear, based on Meloni’s public interactions with Trump, whether the premier has a clear understanding of what Trump wants as part of an agreement.
His administration has said its tariffs would enable trade negotiations that would box out China, the world’s dominant manufacturer. But Trump maintains that rivals and allies alike have taken advantage of the U.S. on trade, a position that has frustrated long-standing partners and raised concerns about whether Trump is a trustworthy dealmaker.
Trump tried to push back against claims that his tariffs are harming the economy, saying that gasoline and egg prices are already dropping. The president blamed the Federal Reserve for interest rates rising on U.S. debt. Rates largely increased because investors were worried about Trump’s tariff plans and they became less willing to buy Treasury notes, while the central bank has held steady on its own benchmark rates because of economic uncertainty.
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