SCOTUS should uphold ruling to strike down tariffs, says fmr. trade official Matt Gold

Trade Tensions and Tariffs - The market is closely watching trade tensions, especially regarding tariffs imposed by President Trump on various countries, including Canada [1] - The potential average effective tariff rate is estimated to be 15% to 20% [3] - Tariffs are generally considered inflationary by raising prices, with American consumers ultimately bearing the cost [3] - The impact of tariffs is influenced by how American importers pass on the tariff burden to overseas suppliers and the fluctuation of the US dollar against other currencies [3][4] Legal Challenges to Tariffs - A legal challenge is underway against President Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA) [5][6] - The Constitution grants Congress the tariff power, but Congress also enacts statutes allowing the president to impose tariffs in specific situations [7] - The IEEPA was not previously seen as authorizing a president to impose tariffs, only non-tariff trade barriers [7] - A lower court initially struck down the tariffs, but the Court of Appeals blocked the order, and the tariffs are still being collected [9] - The Court of Appeals expressed skepticism about the legality of the tariffs under the IEEPA [9] US-China Trade Negotiations - US-China trade negotiations are the most closely watched by the market [11] - There is a lack of concrete details in current trade deals, benefiting Chinese trade negotiators [11][12] - China seems to be able to pressure the US government to relax export controls [13] - The absence of concrete details in trade deals provides no incentive for the Chinese government to commit to specific terms [14]