A US federal court in New York has blocked President Donald Trump’s sweeping tariffs on imports from many countries. The tariffs, known as the “Liberation Day” tariffs, aimed to impose taxes on goods from countries that sell more to the US than they buy. The court ruled that the president overstepped his authority in imposing these duties unilaterally under emergency powers. This legal setback disrupts a core part of Trump’s trade strategy and has caused uncertainty in the global trade landscape.
Legal Challenge and Court Ruling
The ruling came after several lawsuits challenged the tariffs, arguing that the president lacked the legal power to impose such wide-ranging import taxes. The court’s decision temporarily halts the tariffs on imports from various nations, including:
- Canada
- Mexico
Following the decision, stock markets rose in Asia, reflecting relief among investors who feared an escalating trade war.
Potential Next Steps and Market Reactions
Despite the block, experts say President Trump may seek alternative measures to offset the impact of the court ruling. Analysts from Goldman Sachs noted that other tax tools could be used to continue the trade agenda. Meanwhile, the Trump administration has vowed to appeal the decision and describe the ruling as a ‘judicial coup.’
The outcome of this appeal and its effect on ongoing trade negotiations remain unclear, contributing to ongoing economic uncertainty.
Stay tuned to Questiqa World News for more latest updates.
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