2025-08-29 21:55
Appeals court on 7-4 vote rules against Trump's tariffs Court delays ruling taking effect to allow for Supreme Court appeal Trump administration may have Plan B NEW YORK, Aug 29 (Reuters) - A divided U.S. appeals court ruled on Friday that most of Donald Trump's tariffs are illegal, undercutting the Republican president's use of the levies as a key international economic policy tool. The court allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the U.S. Supreme Court. Sign up here. The decision comes as a legal fight over the independence of the Federal Reserve also seems bound for the Supreme Court, setting up an unprecedented legal showdown this year over Trump's entire economic policy. Trump has made tariffs a pillar of U.S. foreign policy in his second term, using them to exert political pressure and renegotiate trade deals with countries that export goods to the United States. The tariffs have given the Trump administration leverage to extract economic concessions from trading partners but have also increased volatility in financial markets. Trump lamented the decision by what he called a "highly partisan" court, posting on Truth Social: "If these Tariffs ever went away, it would be a total disaster for the Country." He nonetheless predicted a reversal, saying he expected tariffs to benefit the country "with the help of the Supreme Court." The 7-4 decision from the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., addressed the legality of what Trump calls "reciprocal" tariffs imposed as part of his trade war in April, as well as a separate set of tariffs imposed in February against China, Canada and Mexico. Democratic presidents appointed six judges in the majority and two judges who dissented, while Republican presidents appointed one judge in the majority and two dissenters. The court's decision does not impact tariffs issued under other legal authority, such as Trump's tariffs on steel and aluminum imports. 'UNUSUAL AND EXTRAORDINARY' Trump justified both sets of tariffs - as well as more recent levies - under the International Emergency Economic Powers Act. IEEPA gives the president the power to address "unusual and extraordinary" threats during national emergencies. "The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax," the court said. "It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs." The 1977 law had historically been used for imposing sanctions on enemies or freezing their assets. Trump, the first president to use IEEPA to impose tariffs, says the measures were justified given trade imbalances, declining U.S. manufacturing power and the cross-border flow of drugs. Trump's Department of Justice has argued that the law allows tariffs under emergency provisions that authorize a president to "regulate" imports or block them completely. Trump declared a national emergency in April over the fact that the U.S. imports more than it exports, as the nation has done for decades. Trump said the persistent trade deficit was undermining U.S. manufacturing capability and military readiness. Trump said the February tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop illegal fentanyl from crossing U.S. borders, an assertion the countries have denied. MORE UNCERTAINTY William Reinsch, a former senior Commerce Department official now with the Center on Strategic and International Studies, said the Trump administration had been bracing for this ruling. "It's common knowledge the administration has been anticipating this outcome and is preparing a Plan B, presumably to keep the tariffs in place via other statutes." There was little reaction to the ruling in after-hours stock trading. "The last thing the market or corporate America needs is more uncertainty on trade," said Art Hogan, chief market strategist at B. Riley Wealth. Trump is also locked in a legal battle to remove Federal Reserve Governor Lisa Cook, potentially ending the central bank's independence. "I think it puts Trump's entire economic agenda on a potential collision course with the Supreme Court. It's unlike anything we've seen ever," said Josh Lipsky, chair of international economics at the Atlantic Council. The 6-3 conservative majority Supreme Court has issued a series of rulings favoring Trump's second term agenda but has also in recent years been hostile to expansive interpretations of old statutes to provide presidents newly-found powers. The appeals court ruling stems from two cases, one brought by five small U.S. businesses and the other by 12 Democratic-led U.S. states, which argued that IEEPA does not authorize tariffs. The Constitution grants Congress, not the president, the authority to issue taxes and tariffs, and any delegation of that authority must be both explicit and limited, according to the lawsuits. The New York-based U.S. Court of International Trade ruled against Trump's tariff policies on May 28, saying the president had exceeded his authority when he imposed both sets of challenged tariffs. The three-judge panel included a judge who was appointed by Trump in his first term. Another court in Washington ruled that IEEPA does not authorize Trump's tariffs, and the government has appealed that decision as well. At least eight lawsuits have challenged Trump's tariff policies, including one filed by the state of California. https://www.reuters.com/legal/government/most-trump-tariffs-are-not-legal-us-appeals-court-rules-2025-08-30/
2025-08-29 21:49
US dollar index last down against euro after PCE data Oil prices lower with weaker demand expected Fed funds futures price in 89% odds of a US cut next month NEW YORK, Aug 29 (Reuters) - Major stock indexes fell on Friday, with technology shares including Dell Technologies (DELL.N) , opens new tab leading declines, while the dollar weakened against the euro after U.S. inflation data kept alive expectations of a September interest rate cut. Dell dropped 8.9% after it reported results late Thursday that included high manufacturing costs for artificial intelligence-optimized servers. Other AI-related shares fell in the broader tech selloff including Nvidia (NVDA.O) , opens new tab, down 3.3%, and Broadcom (AVGO.O) , opens new tab, down 3.6%. The Nasdaq fell more than 1% and the S&P 500 technology index (.SPLRCT) , opens new tab fell 1.6%. Sign up here. The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index (PCE) 0.2% in July, versus an unrevised 0.3% increase in June and matching the estimate of economists polled by Reuters. In the 12 months through July, PCE inflation increased 2.6% after climbing 2.6% in June. Stripping out the volatile food and energy components, the so-called core PCE Price Index increased 0.3% last month. That followed a 0.3% rise in core inflation in June. "You have to love it when a plan comes together. Today's numbers on both the personal consumption, expenditure, and income, and spending, were right down the middle of the fairway," Art Hogan, chief markets strategist for B. Riley Wealth in Boston, said via email. "This leaves the door wide open for the Fed to cut rates in September and likely again in October and in December." Traders are now pricing in 89% odds of a cut by the Federal Reserve next month, up from 84% before the data. Traders had increased bets on more cuts after Fed Chair Jerome Powell last Friday adopted an unexpectedly dovish tone. The euro was last up 0.11% at $1.1696. The dollar index , which measures the greenback against a basket of currencies, fell 0.09% to 97.79. The Dow Jones Industrial Average (.DJI) , opens new tab fell 92.02 points, or 0.20%, to 45,544.88, the S&P 500 (.SPX) , opens new tab fell 41.60 points, or 0.64%, to 6,460.26 and the Nasdaq Composite (.IXIC) , opens new tab fell 249.61 points, or 1.15%, to 21,455.55. "Today is just weakness in the top of the market, in tech," said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. For the month, the S&P 500 rose 1.9%, the Dow rose 3.2% and the Nasdaq added 1.6%. Major U.S. financial markets will be closed for the Labor Day holiday on Monday. European shares closed lower, hitting their lowest in over two weeks, weighed down by British banks. Data released on Friday also showed French consumer prices rose slightly less than anticipated in August while Spain's European Union-harmonized 12-month inflation rate was steady at 2.7%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 4.77 points, or 0.50%, to 951.57. The pan-European STOXX 600 (.STOXX) , opens new tab index fell 0.64%. In Treasuries, l edged higher as traders closed positions ahead of the long weekend and repositioned for month-end. The yield on benchmark U.S. 10-year notes rose 1.6 basis points to 4.223%. The two-year note Fed Governor Christopher Waller on Thursday said he wanted to start cutting interest rates next month and "fully expects" more rate cuts to follow, to bring the Fed's policy rate closer to a neutral setting. Investors are keen to see U.S. jobs data for August, which is due next Friday. They also are watching for more news on U.S. President Donald Trump's attempt to fire Fed Governor Lisa Cook. A federal judge said on Friday she would set an expedited briefing schedule in Cook's bid to temporarily block Trump from firing her while she pursues a lawsuit that says he has no valid reason to remove her. Oil prices were lower. U.S. crude fell 59 cents to settle at $64.01 a barrel and Brent declined 50 cents to settle at $68.12. Spot gold rose 0.88% to $3,446.75 an ounce. https://www.reuters.com/world/china/global-markets-global-markets-2025-08-29/
2025-08-29 21:12
WASHINGTON, Aug 29 (Reuters) - U.S. Department of Homeland Security Secretary Kristi Noem said on Friday she fired two dozen members of the Federal Emergency Management Agency's (FEMA) IT department, citing "massive cyber failures." "While conducting a routine cybersecurity review, the DHS Office of the Chief Information Officer (OCIO) discovered significant security vulnerabilities that gave a threat actor access to FEMA’s network," the DHS said in a statement. Sign up here. "The investigation uncovered several severe lapses in security that allowed the threat actor to breach FEMA’s network and threaten the entire Department and the nation as a whole." No Americans were directly impacted and no sensitive data was extracted from any DHS networks, the statement added. https://www.reuters.com/world/us/dhs-chief-noem-fires-two-dozen-fema-employees-citing-cybersecurity-failures-2025-08-29/
2025-08-29 21:04
Aug 29 (Reuters) - The U.S. International Trade Commission voted on Friday to proceed with an investigation into whether solar panels from India, Laos and Indonesia are stifling domestic manufacturing, a key procedural step that could result in tariffs on those imports. WHY IT'S IMPORTANT The unanimous decision by the three-member panel is a victory for domestic solar manufacturers who say Chinese companies with operations in those countries receive unfair government subsidies and are selling their products below the cost of production in the United States. U.S. producers are seeking to protect billions of dollars of investment in American factories. Sign up here. KEY QUOTE "Today's ITC decision confirms what our petitions allege: U.S. solar manufacturers are being undercut and harmed by unfairly traded imports. Chinese-owned and other companies in Laos, Indonesia, and India are gaming the system with unfair practices that are gutting U.S. jobs and investment,” said Tim Brightbill, lead counsel to the Alliance for American Solar Manufacturing and Trade and partner at Wiley Rein LLP. CONTEXT The case was brought in July by the alliance, a coalition of U.S. solar manufacturers including First Solar (FSLR.O) , opens new tab and Hanwha's (000880.KS) , opens new tab Qcells. Imports from India, Indonesia, and Laos surged to $1.6 billion last year, up from $289 million in 2022, according to the group. Many of these imports are believed to have shifted from countries already subject to U.S. tariffs on Southeast Asian solar exports. WHAT’S NEXT The U.S. Department of Commerce will continue investigations into the imports, with preliminary determinations on countervailing, or anti-subsidy, duties expected around Oct. 10 and on antidumping duties around Dec. 24. https://www.reuters.com/sustainability/climate-energy/us-will-proceed-with-probe-solar-imports-india-laos-indonesia-2025-08-29/
2025-08-29 20:53
FEMA extends freeze on hiring any new employees until at least end of December Trump plans to phase out FEMA after 2025 hurricane season Agency says it is committed to delivering for Americans Former FEMA staff criticize Trump administration's inexperience WASHINGTON, Aug 29 (Reuters) - The U.S. Federal Emergency Management Agency has extended a hiring freeze through at least the end of this year, according to three sources familiar with the matter, as the peak of hurricane season approaches. The Trump administration froze hiring government-wide through October 15, with exceptions for public safety employees and a few other categories. FEMA is extending that freeze, according to the sources. Sign up here. The Department of Homeland Security "is committed to ensuring FEMA delivers for the American people," a FEMA spokesperson said in a statement. The spokesperson did not respond to a question about the hiring freeze. The agency is overseen by the Department of Homeland Security. News about the freeze trickled through the agency the same week that three dozen former and current FEMA employees signed a public letter of dissent against the agency’s leaders. The letter, sent by a mix of former political appointees and permanent staff, said the inexperience of the Trump administration’s top appointees could lead to catastrophe at the level of Hurricane Katrina. This week marks the 20th anniversary of the storm that devastated towns across the Gulf Coast. The Trump administration put staff named in the letter on leave. Trump said in June that he plans to phase out FEMA after the 2025 hurricane season. The peak of the Atlantic hurricane season is September 10. The end of FEMA would mean big changes for the millions of Americans who rely on the agency after hurricanes, wildfires, floods, tornadoes and other natural disasters each year. FEMA sends , opens new tab billions of dollars annually to states to shelter people who have lost their homes, distribute food and rebuild damaged buildings. Several high-ranking officials have left the agency since President Donald Trump took office, raising concerns about whether FEMA will be equipped to handle a large-scale disaster. In May, FEMA's then-acting administrator, Cameron Hamilton, was fired abruptly and replaced by David Richardson, a DHS official with no prior experience in managing responses to natural disasters. In an early meeting with staff, Richardson vowed to "run right over" employees who resisted reforms. https://www.reuters.com/legal/litigation/fema-extends-hiring-freeze-through-2025-hurricane-season-looms-2025-08-29/
2025-08-29 20:44
SAO PAULO, Aug 29 (Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Friday he is in "no rush" to reciprocate tariffs imposed by the United States on goods from his country, and reiterated that his administration is open to negotiations. Lula's remarks came as his Foreign Ministry ordered trade body Camex to start analyzing whether a local reciprocity law could be used against the United States, after President Donald Trump slapped 50% duties on Brazilian goods. Sign up here. "This is a process that takes a bit of time," Lula said in an interview with Itatiaia radio. "We have to tell the United States that we also have actions we can take against them. But I am in no rush. What I want is to negotiate." Brazil's Foreign Trade Secretary Tatiana Prazeres said also on Friday that the country's reciprocity law ultimately aims to help Brazil come to an understanding with the Trump administration. Speaking at an event hosted by the American Chamber of Commerce-Brazil on Friday, Prazeres said any countermeasures would involve a lengthy process and require consultations with the United States. Officials from Latin America's largest economy have repeatedly complained about the lack of room to negotiate tariffs with U.S. counterparts, with a letter sent in May by Lula's administration proposing talks so far going unanswered. Prazeres stressed that the newly launched reciprocity law process is "meant to support Brazil's negotiating effort, while placing us at the table under different negotiating conditions." Washington raised tariffs on Brazilian goods to 50% from 10%, with Trump denouncing what he called unfair trade and accusing Brazil of a "witch hunt" against former President Jair Bolsonaro, his far-right ally on trial for allegedly plotting a coup. Key exports such as orange juice and aircraft were exempted from the tariff hike, but other major products sold by Brazil to the U.S., including coffee and meat, are now subject to the full tariff. https://www.reuters.com/world/americas/brazils-lula-no-rush-retaliate-against-us-tariffs-2025-08-29/
