Global Economy News
LAST UPDATE: May 29, 2025
Trade Court Strikes Down Trump’s Global Tariffs
The U.S. Court of International Trade ruled that former President Donald Trump’s administration exceeded its authority under the 1977 International Emergency Economic Powers Act when it imposed universal tariffs, effectively striking them down.
Insight
The court’s decision challenges the legal foundation of broad executive-imposed tariffs, emphasizing the limits of presidential authority in trade matters. This ruling may influence future administrations’ approaches to trade policy, reinforcing the need for legislative backing. The decision could also impact ongoing trade negotiations and the administration’s proposed tax-extension plans, as tariff revenues were a significant component. The White House’s appeal and exploration of alternative legal avenues indicate the administration’s commitment to maintaining its tariff strategy.
Lutnick Defends US Tariffs as Key to India-Pakistan Ceasefire
Commerce Secretary Howard Lutnick claimed that the recent ceasefire between India and Pakistan was achieved after the U.S. offered both countries trading access, defending the administration’s tariff policies.
Insight
Lutnick’s assertion links U.S. trade policy directly to geopolitical outcomes, suggesting that economic incentives can influence international peace efforts. This perspective frames tariffs not only as economic tools but also as instruments of foreign policy. However, such claims may be contentious, as they attribute complex diplomatic achievements to unilateral trade actions. The statement may also reflect the administration’s broader strategy of leveraging economic measures to achieve foreign policy objectives.
China says ‘no winners’ in trade war as US court blocks tariffs
China’s Foreign Ministry responded to a U.S. court ruling that blocked most of former President Donald Trump’s sweeping tariffs, stating that “trade wars have no winners” and emphasizing the harmful effects of protectionism.
Insight
The U.S. Court of International Trade’s decision to invalidate the majority of Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA) marks a significant legal setback for unilateral trade measures. China’s reaction underscores its longstanding opposition to protectionist policies and highlights the importance of multilateral trade frameworks. This development may influence future U.S.-China trade negotiations and could lead to a reevaluation of tariff strategies by both nations.
UK says US ruling on Trump’s tariffs ‘only first stage’ of legal proceedings
The British government acknowledged the U.S. court’s decision to block President Trump’s tariffs, emphasizing that it is a domestic matter for the U.S. and represents only the initial phase of ongoing legal proceedings.
Insight
The UK’s cautious response reflects the complexities of international trade relations and the potential implications of U.S. legal decisions on global markets. By highlighting the preliminary nature of the ruling, the UK maintains a neutral stance while monitoring developments that could affect bilateral trade agreements. This approach allows the UK to navigate the evolving trade landscape without prematurely committing to a position that might impact future negotiations.
Davos founder Klaus Schwab launches criminal complaint against accusers
Klaus Schwab, founder of the World Economic Forum (WEF), filed a criminal complaint for defamation and coercion against anonymous whistleblowers whose allegations led to his resignation after over 50 years at the helm.
Insight
Schwab’s legal action follows serious accusations, including improper financial benefits and mishandling of sexual harassment complaints, which prompted a board-led investigation and his subsequent resignation. By filing this complaint, Schwab aims to defend his legacy and challenge the credibility of the allegations. This move also brings attention to governance and accountability within influential global organizations like the WEF, potentially prompting broader discussions on leadership transparency and ethical standards.
