The court overturns most of Trump's duties. Markets respond to growth

A national court in fresh York ruled Wednesday evening local time that under the U.S. Constitution the exclusive right to regulate abroad trade has been granted to Congress. Extraordinary powers of the president must not restrict this competence.

Donald Trump, announcing duties, referred to the 1977 bill. However, the three-member jury stressed that these provisions do not supply for the usage of duties as a means of protecting the country from economical risks. Trump was the first U.S. president to usage this bill for this purpose.

The Court of First Instance immediately annulled Trump's decisions concerning the duties which had been introduced since he took office in January, although the ruling does not cover certain manufacture tariffs on imports of cars, steel and aluminium, based on another legislation. Reuters reported that the decision was positively received in the financial markets, with the dollar gaining value for the euro, the yen and the Swiss franc, as well as increases in the stock exchange in fresh York City and the stock markets in Asia.

Trump disagrees.

Donald Trump's administration almost immediately appealed against that ruling. White home spokesperson Kush Desai, commenting on the court ruling, stated that American trade deficits are a major home crisis that negatively affected local communities, weakened the position of workers and undermined the foundations of the defence industry.

It is not for judges to decide how we should deal with a crisis situation in the country – he said.

If the court ruling is retained, it could seriously jeopardise Donald Trump's strategy of applying advanced tariffs as a tool of force in trade negotiations. It besides introduces uncertainty about the future of trade talks with the European Union, China and another countries.

Businesses speak

The ruling came after the examination of 2 lawsuits – 1 brought a set of 5 tiny US companies importing goods subject to customs, while the another presented a coalition of officials from 12 states. The representatives of these companies, including the importer of alcohols and the maker of musical instruments, stressed that the fresh tariffs had a negative impact on their activities. There are presently at least 5 another cases in the courts relating to the duties imposed by Trump.

The U.S. Department of Justice has stated that lawsuits should be dismissed as no of the companies has yet suffered real losses as a consequence of the imposition of duties. The hotel besides argued that only Congress, not private companies, has the right to question the President's decisions in this area.