The Real Liberation Day?

This is far from over, but the U.S. Court of International Trade has ruled that President Trump doesn’t have the authority to impose tariffs unilaterally.

Good Morning!

Here are today’s highlights:

• Ami Kassar says we all make big assumptions that are wrong.

• Could exempting tips from taxes actually hurt employees?

• Under the GOP tax bill, Opportunity Zones would get an extension and an expansion.

• The FAA says the mass departures of employees will not affect safety.

THE TRADE WARS

A three-judge panel strikes down most of Trump’s tariffs: “A federal trade court ruled President Trump didn’t have the authority to impose sweeping tariffs on virtually every nation, voiding the levies that have sparked a global trade war and threatened to upend the world economy. The decision on Wednesday from the Court of International Trade blocked one of the Trump administration’s most audacious assertions of executive power, under the International Emergency Economic Powers Act of 1977. Shortly after the decision was handed down, lawyers for the Trump administration notified the court they will appeal. ‘The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder,’ a three-judge panel wrote.”

• “Trump has used IEEPA to underpin most of his second-term tariffs—from duties on Canada, Mexico, and China imposed over fentanyl smuggling to the far-reaching reciprocal tariffs levied in early April on virtually every U.S. trading partner. Trump later paused the reciprocal tariffs for 90 days to allow for negotiations.”

• “The order blows a hole in global trade talks, already under way with more than a dozen nations, which began after the reciprocal tariffs were imposed. It also throws into question recent agreements with the U.K. and China.”

• “The trade court, which has nationwide jurisdiction over tariffs and trade disputes, was the first to rule on requests for injunctions after holding hearings in two cases. Appeals from the court are heard by the U.S. Court of Appeals for the Federal Circuit and ultimately the Supreme Court.”

• “White House spokesman Kush Desai said in response to the ruling that the trade deficit had weakened the country. ‘It is not for unelected judges to decide how to properly address a national emergency,’ Desai said. ‘President Trump pledged to put America first, and the administration is committed to using every lever of executive power to address this crisis and restore American Greatness.’” READ MORE