Yves here. Even though the Trump Team is trying to preserve the appearance of having the upper hand in trade negotiations, losing on the first two cases decided so far on the Administration’s use of the International Economic Emergency Powers Act to justify his tariffs has dented momentum. And that’s a bigger deal than it might seem. First, as the article below notes, Trump is a negotiating one note Nellie, seemingly able only to make maximalist demands, including insisting on unnecessarily speedy and typically counterproductive timetable, only to suddenly reverse himself when met with serious opposition.
The Orange TACO. #Trump #TrumpIsUnfitForOffice #TACO #Resist pic.twitter.com/u8XOf7fzo7
— Triggered Tees Rebel (@WKazingmei) May 29, 2025
The footage below came from a deleted Saturday Night Live segment:
#TACO
Trump Always Chickens Out @POTUS @realDonaldTrump— M-A.Stay’Legit™️🇨🇦 (@BagdMilkSoWhat) May 28, 2025
Trump also seems to have the odd notion that having hissies bolsters his manhood:
What’s this deal that China violated ?
No one knows because it doesn’t exist
I’m no fan of China and they totally steal our IP and much more.
However this rant is simply TACO TRUMP lashing out to heal his bruised ego as he is now the laughing stock of the planet 🤣 pic.twitter.com/2UDi0pcAnS
— Non-Hyphenated American (@NHAunleashed) May 30, 2025
Recall that Optor successfully used satire and stunts to erode the legitimacy of the Milosevic government. Perhaps the not-very-effective Democrat opposition should have deployed laughter rather than lawfare.
On the trade front, what China and Japan do next would be early indicators of the effect of the legal battles on the trade talks.
By Susan Stone, Credit Union SA Chair of Economics, University of South Australia. Originally published at The Conversation
Earlier this week, a US court blocked the so-called “Liberation Day” tariffs that US President Donald Trump imposed on imported goods from around 90 nations.
On Wednesday (US time), the Court of International Trade ruled the emergency authority Trump used to impose the tariffs could not override the role of Congress, which has the right to regulate commerce with other countries.
The following day, however, the US Court of Appeals for the Federal Circuit in Washington paused the trade court’s ruling, temporarily reinstating Trump’s tariffs. The earlier court ruling, and the fresh uncertainty prompted by the appeal have left the implementation of Trump’s trade policy in disarray.
Even though it has been paused, the trade court’s ruling calls into question trade negotiations underway with more than 18 different nations, which are trying to lower these tariffs. Do these countries continue to negotiate or do they wait for the judicial process to play out?
The Trump administration still has other mechanisms through which it can impose tariffs, but these have limits on the amount that can be imposed, or entail processes which can take months or years. This undermines Trump’s preferred method of negotiation: throwing out large threats and backing down once a concession is reached.
Emergency Powers Were a Step Too Far
The lawsuits were filed by US importers of foreign products and some US states, challenging Trump’s use of the International Emergency Economic Powers Act of 1977.
The lawsuits argued the national emergencies cited in imposing the tariffs – the trade deficit and the fentanyl crisis – were not an emergency and not directly addressed by the tariff remedy. The court agreed, and said by imposing tariffs Trump had overstepped his authority.
The ruling said the executive orders used were “declared to be invalid as contrary to law”.
The act states the president is entitled to take economic action in the face of “an unusual and extraordinary threat”. It’s mainly been used to impose sanctions on terrorist groups or freeze assets from Russia. There’s nothing in the act that refers to tariffs.
The decision means all the reciprocal tariffs – including the 10% tariffs on most countries, the 50% tariffs Trump was talking about putting on the EU, and some of the Chinese tariffs – are ruled by the court to be illegal.
The ruling was based on two separate lawsuits. One was brought by a group of small businesses that argued tariffs materially hurt their business. The other was brought by 12 individual states, arguing the tariffs would materially impact their ability to provide public goods.
Some Industry Tariffs Will Remain in Place
The ruling does not apply to tariffs applied under Section 201, known as safeguard tariffs. They are intended to protect industries from imports allegedly being sold in the US market at unfair prices or through unfair means. Tariffs on solar panels and washing machines were brought under this regulation.
Also excluded are Section 232 tariffs, which are applied for national security reasons. Those are the steel and aluminium tariffs, the automobile and auto parts tariffs. Trump has declared all those as national security issues, so those tariffs will remain.
Most of the tariffs against China are also excluded under Section 301. Those are put in place for unfair trade practices, such as intellectual property theft or forced technology transfer. They are meant to pressure countries to change their policies.
Other Trade investigations Are Still Underway
In addition, there are current investigations related to copper and the pharmaceuticals sector, which will continue. These investigations are part of a more traditional trade process and may lead to future tariffs, including on Australia.
Now for the Appeals
Following the subsequent reinstatement of tariffs, we now have to wait for the appeals process to play out. This may take some time. The plaintiffs have until June 5 to respond, and the Trump administration has until June 9.
In the meantime, there are at least five other legal challenges to tariffs pending in the courts.
If the appeals court provides a ruling the Trump administration or opponents don’t like, they can appeal to the Supreme Court.
Alternatively, the White House could direct customs officials to ignore the court and continue to collect tariffs.
The Trump administration has ignored court orders in the past, particularly on immigration rulings.
The administration is unlikely to lie down on this. In addition to its appeal process, officials complained about “unelected judges” and “judicial overreach” and may contest the whole process. The only thing that continues to be a certainty is that uncertainty will drive global markets for the foreseeable future.
‘In addition to its appeal process, officials complained about “unelected judges” and “judicial overreach” and may contest the whole process.’
You can say that again. Press Secretary Karoline Leavitt totally lost it today-
‘There is a troubling and dangerous trend of unelected judges inserting themselves into the presidential decision making process. America cannot function if President Trump, or any other president, for that matter, has their sensitive diplomatic or trade negotiations railroaded by activist judges.’
https://www.independent.co.uk/news/world/americas/us-politics/karoline-leavitt-trump-judges-courts-tariffs-b2760310.html
Checks and balances is obviously something that Leavitt never learned in school – or thinks is needed.
She may have been homeschooled. She may have been Christian-Fascist homeschooled in particular.
There are tens of millions of ChristoMAGAmericans who have been braintrained to believe exactly what she believes. The ChristoMAGA Movement has a very deep bench. There are thousands of interchangeable parts waiting to replace Leavitt if she needs replacing.
And she didn’t “lose it”. She merely stated forthrightly and forcefully what the basic ChristoMA
GA belief on the subject of “judges” is.
The MAGApublicans and paleo-MAGA Republicans have been barking and baying about “activist judges” for decades now, ever since Brown versus Board of Education.
Still,the tariffs are working. Don’t try to buy Kentucky bourbon or a California wine in Canada.
yes, and Walmart has to diversify vendors outside of China—regardless of the final outcome of the litigation. even if there is only a 16% chance of Trump winning the litigation, presumably most management teams are not willing to play Russian Roulette with their supply chain.
(winners will be those who benefit as Chinese vendors who set up/expand shop in SE Asia)
and of course, even if Trump loses the litigation, he’ll tout $xxx billion of new re-shoring investment in the USA, even if most of it turns into vaporware like Foxconn’s Wisconsin factories.
It was interesting to see the Truth Social post expressing frustration with Leonard Leo of federalist society (in)famy. Can this be the fever that clears this menace from the federal judiciary? Yes, I know it’s too much to hope for.
One of the “activist” trade court judges was appointed by Trump. Of course from the standpoint of US consumers one man’s activist is another man/woman’s freedom fighter. Plus it’s pretty rich, while you are stretching the law like a rubber band, to accuse others of doing so.
Trump’s FP has been bad so far but his tariff scheme is an insane mstake according to the court of commonsense. Even Musk said the same. Time for a taco.
A mistake for Trump, perhaps, and for Americans about to enter a world of economic hurt, but this downgrading or correction of US FP/economic stature and influence seems long overdue, a necessary rebalancing of worldwide power dynamics.
The flag lapel pin was a nice touch on the chicken suit AI video of Benedict Donald~
Cowboy TACO.
https://x.com/i/status/1928278735205068988
Recall that Optor successfully used satire and stunts to erode the legitimacy of the Milosevic government. Perhaps the not-very-effective Democrat opposition should have deployed laughter rather than lawfare.
~~~~~~~~~~~~~~~~~~
Seldom do you see Trump so out of sorts as when he was hit with the TACO query, which not only questioned his negotiating abilities, but also tagged him with being vaguely Mexican.
The Donkey Show doesn’t do funny, hell they don’t do much of anything. They desperately need a Dick Tuck!
https://en.wikipedia.org/wiki/Dick_Tuck
The New Democrats of today are non-humor-capable, as Foreign Minister Lavrov might put it.
It will be up to self-starting free-lance amateur political humor-activists to try various humor attacks to see what works.
I have read that it was Wall Streeters themselves who invented this TACO meme. Without any input from any Democrats at all. And it has taken off to the point where Trump himself is aware of it.
I saw a good idea for political humor in this vein over at Ian Welsh’s comment threads. Bringing a part of it over here, I would offer the suggestion that Trump be given a nickname just like the various Mafia guys had nicknames . . . a nickname in the spirit of Anthony ” Fat Tony” Salerno, Anthony ” Tony Pro” Provenzano, Jimmy ” The Bull” Gravano, Vincent ” The Chin” Gigante, etc. It would have to be a short and sweet enough nickname that it would take off and go viral after a few first-infection seedings here and there around the Net.
I offer the nickname ” Fat TACO”. As in . . . President Donald ” Fat TACO ” Trump. Maybe with the parallel nickname running in tandem . . . Donald ” Fat Donnie” Trump. Maybe each would re-inforce the other.
Donnie Crypto?
Unrelated to his trade vulnerabilities, I know, but something that’s likely to tag him over time… and the “music” of it works, as it must in mob-speak.
Wouldn’t some of the state actions go before elected judges?
Amazing lack of introspection and concern for having any standards at all – same people talking lawfare and infected rogue judges always the same pipsqueaks who were furious at the notion Elon had no place in the federal government making decisions.