Court Ruling Blows Up Trump's Tariff Leverage

President Trump upended world trade with his tariffs. Wednesday's decision from a federal court upends Trump's ability to continue upending things. For now, markets are thrilled that the court has taken away Trump's ability to wield most tariffs the way he has, but the administration plans to appeal. Details:

• Ruling: The Court of International Trade—a federal body made up of Reagan, Obama, and Trump appointees—decreed that Trump doesn't have the legal authority to impose most of the sweeping tariffs he has enacted. Trump did so under his interpretation of the International Emergency Economic Powers Act of 1977, notes the Wall Street Journal, but the court found that he overreached and invalidated them.

• Affected: This means most of the tariffs Trump imposed, or imposed and then lifted pending negotiations, are gone, though Axios notes some exceptions: those on autos, steel, and aluminum were not enacted under the 1970s law and stand.
• Fallout: The ruling "blows a hole in global trade talks, already under way with more than a dozen nations," per the Journal, and it "throws into question recent agreements with the UK and China." The New York Times finds that the court essentially wiped out Trump's leverage with US trading partners.
• What now: The court gave the Trump administration 10 days to formally unwind the tariffs, but the White House plans to appeal. "The judicial coup is out of control," tweeted Trump adviser Stephen Miller.
• Markets: Dow futures were up 300 points Thursday morning, reports CNBC, and world stocks also rallied.

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