Trump's Response to Tariff Ruling Will Be a Blow to the Market
While the market cheers, we can’t rule out Trump’s response and more uncertainty.
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Futures point to a jump higher when U.S. equity markets open later on Thursday morning. The catalyst for that was the late Wednesday night ruling from a federal trade court that struck down the “reciprocal” tariffs that President Trump imposed on what he called “Liberation Day,” putting an immediate stop to the collection of a sweeping set of levies that the president imposed.
A panel of three judges gave Trump’s team 10 days to halt tariff collection in a decision that the White House has already appealed.
While we suspect that ruling no doubt brings a wry smile to more than a few faces, we are bracing for what we can only be called “the Trump response.” Analysis from Goldman Sachs GS points to the court ruling as a “temporary setback” for Trump’s trade agenda as the president can use other tools to impose tariffs.
Our thought is that, while the market cheers the court ruling today, it should prepare for another bout of uncertainty as team Trump responds.
