2025-05-28 23:55

Court cites that Constitution grants Congress power to regulate international commerce Markets cheer ruling, dollar and global stocks rally Trump administration files notice of appeal, questions authority of the court Tariffs on autos, steel and aluminum remain in place NEW YORK, May 28 (Reuters) - A U.S. trade court blocked most of President Donald Trump's tariffs in a sweeping ruling on Wednesday that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. The Court of International Trade said the U.S. Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the U.S. economy. Sign up here. "The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage," a three-judge panel said in the decision to issue a permanent injunction on the blanket tariff orders issued by Trump since January. "That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it." Financial markets cheered the ruling. The U.S. dollar rallied following the court's order, surging against currencies such as the euro, yen and the Swiss franc in particular. Wall Street futures rose and equities across Asia also jumped. The judges also ordered the Trump administration to issue new orders reflecting the permanent injunction within 10 days. The Trump administration minutes later filed a notice of appeal and questioned the authority of the court. The court invalidated with immediate effect all of Trump's orders on tariffs since January that were rooted in the International Emergency Economic Powers Act (IEEPA), a law meant to address "unusual and extraordinary" threats during a national emergency. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum, using a different statute. The decisions of the Manhattan-based Court of International Trade, which hears disputes involving international trade and customs laws, can be appealed to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and ultimately the U.S. Supreme Court. TRADE TURMOIL Trump has made charging U.S. importers tariffs on goods from foreign countries the central policy of his ongoing trade wars, which have severely disrupted global trade flows and roiled financial markets. Companies of all sizes have been whipsawed by Trump's swift imposition of tariffs and sudden reversals as they seek to manage supply chains, production, staffing and prices. A White House spokesperson on Wednesday said U.S. trade deficits with other countries constituted "a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute." "It is not for unelected judges to decide how to properly address a national emergency," Kush Desai, the spokesperson, said in a statement. The ruling, if it stands, blows a giant hole through Trump's strategy to use steep tariffs to wring concessions from trading partners. It creates deep uncertainty around multiple simultaneous negotiations with the European Union, China and many other countries. However, analysts at Goldman Sachs noted the order does not block sector-specific levies and there were other legal avenues for Trump to impose across-the-board and country-specific tariffs. "This ruling represents a setback for the administration's tariff plans and increases uncertainty but might not change the final outcome for most major U.S. trading partners," analyst Alec Phillips wrote in a note. Trump has promised Americans the tariffs would draw manufacturing jobs back to U.S. shores and shrink a $1.2 trillion U.S. goods trade deficit, which were among his central campaign promises. Without the instant leverage provided by tariffs, the Trump administration would have to find new forms of leverage or take a slower approach to negotiations with trading partners. Initial reaction among Asian policymakers was muted, with Japan's economy minister saying he would examine the details of the ruling, while the Bank of Korea said it saw the effective tariff rate on South Korean exports under the ruling falling to 9.7% from 13.3%. Hong Kong's financial secretary said the court decision would "at least bring President Trump to reason". BUSINESSES HURTING The ruling came in a pair of lawsuits, one filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses that import goods from countries targeted by the duties and the other by 12 U.S. states. The companies, which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments, have said the tariffs will hurt their ability to do business. "There is no question here of narrowly tailored relief; if the challenged Tariff Orders are unlawful as to Plaintiffs they are unlawful as to all," the judges wrote in their decision. At least five other legal challenges to the tariffs are pending. Oregon Attorney General Dan Rayfield, a Democrat whose office is leading the states' lawsuit, called Trump's tariffs unlawful, reckless and economically devastating. "This ruling reaffirms that our laws matter, and that trade decisions can’t be made on the president’s whim," Rayfield said in a statement. Trump has claimed broad authority to set tariffs under IEEPA. The law has historically been used to impose sanctions on enemies of the U.S. or freeze their assets. Trump is the first U.S. president to use it to impose tariffs. The Justice Department has said the lawsuits should be dismissed because the plaintiffs have not been harmed by tariffs that they have not yet paid, and because only Congress, not private businesses, can challenge a national emergency declared by the president under IEEPA. In imposing the tariffs in early April, Trump called the trade deficit a national emergency that justified his 10% across-the-board tariff on all imports, with higher rates for countries with which the United States has the largest trade deficits, particularly China. The country-specific tariff rates were paused for 90 days a week later though the baseline 10% duty was put in place for most nations. The Trump administration on May 12 said it was also temporarily reducing the steepest tariffs on China while working on a longer-term trade deal. Both countries agreed to cut tariffs on each other for at least 90 days. https://www.reuters.com/world/us/us-court-blocks-trumps-liberation-day-tariffs-2025-05-28/

2025-05-28 23:48

May 28 (Reuters) - The Trump administration has canceled a contract awarded to Moderna (MRNA.O) , opens new tab for the late-stage development of its bird flu vaccine for humans, as well as the right to purchase shots, the drugmaker announced on Wednesday. Shares of Moderna were flat in after-market trading. Sign up here. Moderna in January was awarded $590 million by the Biden administration to advance the development of its bird flu vaccine, and support the expansion of clinical studies for up to five additional subtypes of pandemic influenza This was in addition to $176 million awarded by the U.S. Department of Health and Human Services (HHS) last year to complete the late-stage development and testing of a pre-pandemic mRNA-based vaccine against the H5N1 avian influenza. HHS told Reuters earlier this year that it was reviewing agreements made by the Biden administration for vaccine production. "The cancellation means that the government is discarding what could be one of the most effective and rapid tools to combat an avian influenza outbreak," said Amesh Adalja, senior scholar at the Johns Hopkins Center for Health Security, adding that it is the opposite approach Trump took with Operation Warp Speed to combat COVID-19. An HHS spokesperson said that after a comprehensive internal review, the agency had determined that the project did not meet the scientific standards or safety expectations required for continued federal investment. Bird flu has infected 70 people, most of them farm workers, over the past year as it has spread aggressively among cattle herds and poultry flocks. Health Secretary Robert F. Kennedy Jr. has questioned the use of vaccines and earlier this year drew censure from some in the U.S. Congress after he suggested in a television interview that poultry farmers should let the bird flu spread unchecked through their flocks to study chickens who did not contract it. Moderna said it plans to explore alternatives for late-stage development and manufacturing of the vaccine. The company has been banking on revenue from newer mRNA shots, including its bird flu vaccine and experimental COVID-flu combination vaccine, to make up for waning post-pandemic demand for its COVID vaccine. Moderna also said on Wednesday that it had received positive interim data from a mid-stage trial set up to test the safety and immunogenicity of its bird flu vaccine targeting the H5 avian influenza virus subtype. https://www.reuters.com/business/healthcare-pharmaceuticals/us-cancels-more-700-million-funding-moderna-bird-flu-vaccine-2025-05-28/

2025-05-28 23:45

NAPERVILLE, Illinois, May 28 (Reuters) - The U.S. corn crop has gotten off to a somewhat disappointing start in what is supposed to be a record producing season. Meanwhile, U.S. spring wheat is experiencing its second-worst start to the growing season in history after this year’s plantings dropped to a 55-year low. Sign up here. What might these early figures mean for the growing season overall? How do they compare with past years? And where are the problem spots and near-term prospects for improvement? SHORT OF EXPECTATIONS The U.S. Department of Agriculture on Tuesday afternoon rated 68% of the U.S. corn crop in good-to-excellent (GE) condition in this season’s initial rating, marking the lowest starting health since 2019. That was well below analysts’ average estimate of 73% GE, though initial condition reports from the Crop Watch producers , opens new tab over the weekend averaged out to a six-year low, at least. A 68% GE is not all that bad. On average over the last three years, the initial U.S. corn score comes in around 72%. Additionally, the slower start may be explainable. The unanimous feedback from the Crop Watch producers was that it has been too cold, cloudy and rainy, and the plants are not growing quickly. Hail, frosts, wind, rain and even a period of excessive heat recently stressed crops in the western Corn Belt, which was reported by Crop Watchers. This showed up in USDA’s data on Tuesday. Averaging initial corn conditions by state over the past three years, North Dakota and Ohio stand out. North Dakota at 48% GE is 24 percentage points below average and Ohio’s 41% is 37 points below. Conditions in top producer Iowa are 4 percentage points ahead of normal, Illinois is 7 points behind, South Dakota is down 16 points, Nebraska is down 2 points and Minnesota is 4 points behind. OK OUTLOOK? Three factors may help ease any concerns about current U.S. corn crop health. The corn crop is only two-thirds emerged nationally, a lower-than-usual portion to coincide with the first condition scores. This allows for some play in the near-term figures, as newly emerged crops, if in good shape, could boost the overall score next week. Although not necessarily unusual, less than 40% of corn in Ohio and North Dakota was emerged as of Sunday, possibly allowing for future improvement. All Crop Watch producers last weekend expressed the dire need for heat and sun, and that should start arriving over the weekend after this week finishes out on the cooler, cloudy side. The pattern might not necessarily be long-lasting, but even a short, warm, sunny spell in early June can go a long way for early crop growth. U.S. corn was initially rated 65% GE in 2017, and calculations at the time pointed to near or below-trend yield probabilities. This caused the market to misjudge the crop potential all year, and the 2017 corn crop achieved a new record yield. The 2017 crop was rated 60% GE by the end of July, not too huge of a change from the initial. So even though 60% would not be considered stellar by itself, the lack of large rating swings that season may have been telling. WHEAT WOES U.S. spring wheat was rated 45% GE as of Sunday, tied with 2021 as the second-lowest initial rating over the 40-year history. The worst was 34% in 1988. Those two years are bad company, as they featured well-below-trend U.S. spring wheat yields as both seasons included drought. The 2025 crop is already starting in the hole as U.S. farmers intend to plant their smallest spring wheat area since 1970. Some 60% of U.S. spring wheat was emerged by Sunday, comparable to 66% on the same date in 2021. North Dakota, which produces half of the U.S. spring wheat crop, must remain on watch as only 37% of the wheat there is GE and 26% is considered poor or very poor. Recent cold and wet weather has battered the young wheat crop, so the coming flip to better weather may offer improvement opportunities. Market analysts had expected the initial spring wheat conditions to come in at 71% GE, so the result was much more shocking than the one for corn. But the lighter figures for both certainly set up the potential for market scares this summer if an unfavorable weather pattern were to set in. Karen Braun is a market analyst for Reuters. Views expressed above are her own. https://www.reuters.com/markets/commodities/what-make-surprisingly-low-us-crop-ratings-braun-2025-05-28/

2025-05-28 23:20

WASHINGTON, May 28 (Reuters) - The U.S. Federal Trade Commission said on Wednesday it will require two software companies —Synopsys (SNPS.O) , opens new tab and Ansys (ANSS.O) , opens new tab— to divest certain assets to resolve antitrust concerns surrounding their $35 billion merger. The proposed divestiture will preserve competition across several software tool markets that are critical for the design of semiconductors and light simulation devices, according to the commission. Sign up here. The FTC added that it will help protect consumers from higher input prices for cars, phones and other items. Synopsys is a leading developer and supplier used to design semiconductors, while Ansys provides simulation software tools used for testing products including semiconductors. During an earnings call earlier on Wednesday, Synopsys CEO Sassine Ghazi said the company has regulatory clearances in all jurisdictions excluding China. "We are working cooperatively and actively negotiating ... to secure China regulatory clearance and we continue to anticipate closing in the first half of this year," Ghazi said. https://www.reuters.com/sustainability/boards-policy-regulation/us-ftc-will-require-synopsys-ansys-divest-certain-assets-resolve-merger-concerns-2025-05-28/

2025-05-28 23:05

Manitoba declares state of emergency Premier says 17,000 need to move quickly Oil producer Cenovus Energy evacuates non essential workers WINNIPEG, Manitoba, May 28 (Reuters) - Manitoba declared a state of emergency and urged thousands of people in northern and eastern parts of the province to evacuate on Wednesday, as wildfires spread in Central and Western Canada. Manitoba Premier Wab Kinew said at a news conference that 17,000 people needed to move quickly, including from the city of Flin Flon. Many will be put up at soccer fields and community centers in Winnipeg and other cities, and federal armed forces were arriving to help transport evacuees, he said. Sign up here. "This is the largest evacuation in many Manitobans’ living memory and this will require significant resources and co-operation from all levels of government, Kinew said in a statement. Separately, wildfires in Alberta province have prompted a temporary shutdown of some oil and gas production and forced residents of at least one small town to evacuate. Oil producer Cenovus Energy (CVE.TO) , opens new tab said it was scaling back nonessential workers at its Foster Creek facility in response to the wildfires in northern Alberta. Cenovus' Foster Creek operation is among a number of oil sands facilities operated by companies with assets in the Bonnyville-Cold Lake region. That region was affected on Wednesday by wildfires spanning 2,900 hectares (11.2 square miles) near Chipewyan Lake, a small community in the northern part of the province approximately 130 km (81 miles) west of the oil sands hub of Fort McMurray. Cenovus said it was closely monitoring the evolving wildfire situation and the staffing measure was a precaution. Alberta government officials said on Wednesday there was no current threat to Chipewyan Lake, but residents have been placed on a one-hour evacuation notice as winds could shift. Another blaze, nearly 1,600 hectares in size, is burning out of control about 7 km north of Swan Hills, also in the province's north. The approximately 1,200 residents of Swan Hills were ordered to evacuate on Monday evening. One oil and gas producer in that area, Aspenleaf Energy, said on Monday it had temporarily halted operations as a precaution and shut in approximately 4,000 barrels per day of oil equivalent production. https://www.reuters.com/business/energy/cenovus-energy-scales-back-non-essential-staff-foster-creek-facility-2025-05-28/

2025-05-28 23:00

Coal-fired plants asked to boost stockpiles by 10%, cut imports Move seen as bid to support coal prices, now at four-year lows Traders sceptical that guidelines will spur additional buying BEIJING, May 28 (Reuters) - China is pressing its coal-fired power plants to stockpile more of the fuel and import less in an effort to shore up domestic prices, sources with knowledge of the matter said, but traders are sceptical the measures will help to stop the slide. The coal industry in China faces rising stockpiles of the fuel after a massive expansion of output following shortages and blackouts in 2021 is churning out more coal than even the world's largest thermal power fleet can consume. Sign up here. To support miners whose profits are under pressure, the state planner has asked power plants to prioritise domestic coal and increase thermal coal stockpiles by 10%, setting an overall target of 215 million metric tons by June 10, the sources said. The sources spoke on condition of anonymity because they were not authorised to speak to the media. However, with inventories piling up along the supply chain, two of the sources, both coal traders, said the guidelines would be unlikely to spur much buying or support prices. The powerful state planner, the National Development and Reform Commission (NDRC), did not immediately respond to a facsimile request for comment. Mine stockpiles are up 42% from a year ago, while northern Bohai area port inventories are up 25% annually, the state-run China Energy Daily has said. Buyers are also being asked to procure coal from northern ports to chip away at high port stockpiles, three of the sources said. The NDRC's moves follow months of calls from industry groups and companies to curb coal imports and output. Chinese coal prices have marched steadily downwards, however. Prices for medium-grade coal with a heat value of 5,500 kilocalories per kilogram stood at 620 yuan ($86) per metric ton on Tuesday, the lowest since March 2021. Prices have fallen so far that some buyers have tried to wiggle out of long-term contracts in favour of spot sales. China imported a record 542.7 million tons of coal in 2024, but the total is expected to fall this year. Coal imports slid 16% in April on the year. MINES KEEP WORKING Chinese mine production continues to grow despite the collapse in prices, with a government haunted by the shortages and blackouts of 2021 and 2022 unlikely to consider output cuts. "I think they're very mindful to avoid a repeat of that," said LSEG lead coal analyst Toby Hassall. "They will tolerate a period where some domestic production is really struggling." China's coal production rose 6.6% on the year during the period from January to April, to stand at 1.58 billion tons. Industry profits fell 48.9% year-on-year for the same period, official data showed on Tuesday. https://www.reuters.com/sustainability/boards-policy-regulation/facing-sinking-coal-demand-china-asks-power-plants-just-buy-more-sources-say-2025-05-28/