Goldman Sachs Exchanges Will legal challenges end the trade war?
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Jun 3, 2025 Alec Phillips, Chief US political economist with Goldman Sachs Research, offers keen insights into the recent US trade court ruling that has cast doubt on President Trump's tariffs. He discusses the implications of this legal decision for trade policy, exploring its potential to reshape economic landscapes and investor strategies. The conversation also delves into the complexities of ongoing trade negotiations and the uncertain fiscal impacts stemming from tariff adjustments, leaving listeners with a thought-provoking view on the future of US trade relations.
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Court Blocks Trump's Tariffs
- A U.S. trade court ruled that President Trump's tariffs exceeded the administration's authority due to lack of "intelligible limits."
- The court blocked major tariffs citing the non-delegation doctrine and emergency power misuse.
Alternative Tariff Authorities
- The administration could shift to other tariff authorities, like Section 122, allowing up to 15% tariffs for 150 days.
- This may lead to more targeted tariffs rather than broad across-the-board ones.
Tariff Future Hinges on Authority
- The key issue is the legal authority used by the administration rather than the presence of tariffs themselves.
- The administration likely remains intent on imposing broad tariffs despite court challenges.