"That means import charges aren't going anywhere, even after a federal appeals court on Friday ruled that President Donald Trump's sweeping tariff plan was illegal. "Don't lose sleep on interpreting what it means," analysts at ING Bank wrote on Tuesday. "The simple and straightforward way to view this is tariffs remain in place, and will remain in place going forward," they added."
"Most importantly, they said Congress could step in with a law giving the executive branch more expansive tariff powers. Grace Fan, a managing director of policy research at GlobalData.TS Lombard, echoed that view. "Trump will surely double down by tapping other tariff authorities, keeping trade war chaos ongoing in the next few months as tariff winners/losers shift," she wrote in a note on Saturday."
A federal appeals court ruled the sweeping tariff plan illegal but allowed the tariffs to remain in effect through October 14. Import charges are expected to persist despite the ruling. The administration can shift to other legal authorities, including national security provisions and balance-of-payments measures, to maintain tariffs. Congress could enact legislation granting the executive broader tariff powers. Tariffs are being used as a macro-management tool and can change winners and losers across sectors in the near term. Trade tensions are likely to continue through 2025, with a possible de-escalation by late 2025 as political priorities shift toward upcoming midterm elections, which could improve the outlook for equities and alter bond-market dynamics.
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