U.S. President Donald Trump on Thursday lashed out at a federal trade court ruling that challenged his sweeping tariff agenda, expressing confidence that the Supreme Court would reverse the decision. In a characteristically fiery post on Truth. social, Trump dismissed the Court of International Trade’s ruling as “so wrong, and so political,” while applauding the U.S. Court of Appeals for the Federal Circuit for granting a stay that temporarily reinstates his tariffs.
“The ruling by the U.S. Court of International Trade is so wrong, and so political! Hopefully, the Supreme Court will reverse this horrible, Country threatening decision, QUICKLY and DECISIVELY,” Trump wrote. He labeled the trade court judges “backroom hustlers,” while defending his tariffs as a pathway to generate “trillions of dollars” in revenue for the country.
The initial ruling, issued Wednesday, had ordered Trump to reverse course on his global tariff rollout within 10 days, citing constitutional limits on executive power. The appeals court swiftly responded to Trump’s challenge, issuing a temporary stay on Thursday, effectively keeping the tariffs in place as it considers the case further. The next hearing is scheduled for June 5, with legal experts predicting the matter may ultimately land in the Supreme Court.
The White House also signaled on Thursday that it could seek alternative legal mechanisms to enact Trump’s tariffs even if the courts ultimately strike down his current approach. Trump’s tariffs, which target nations with large trade surpluses, were initially rolled out in April but granted a 90-day exemption period for most countries. That exemption is set to expire in early July.
Meanwhile, Trump met with Federal Reserve Chair Jerome Powell at the White House, amid ongoing friction over interest rates. The Fed confirmed the meeting in a statement, emphasizing that Powell did not share any policy expectations during the discussion and reiterated the Fed’s commitment to data-driven and apolitical decision-making. Powell stated that future rate actions would depend on incoming economic data and their implications for employment and price stability.
Market sentiment remained cautious as traders awaited Friday’s release of the Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. Although the U.S. dollar had retraced sharply overnight, it regained some ground on expectations that the Fed may maintain its cautious stance amid legal and policy uncertainties.
On the commodity front, oil prices remained under pressure, poised for a second weekly decline. Brent crude slipped to $63.84 per barrel and WTI fell to $60.63 as traders anticipated a likely OPEC+ decision to increase production when it meets on Saturday. Analysts warned that the expected hike could exceed 400,000 barrels per day amid a widening global surplus.
The reinstatement of Trump’s tariffs by the appeals court added fresh uncertainty to oil markets. Prices had fallen over 1% earlier in the week on news of the initial court block. Since Trump’s “Liberation Day” tariff announcement on April 2, oil has dropped more than 10%, fueled by fears of reduced demand and a global economic slowdown.
Adding to the complexity, the Trump administration reportedly considered invoking a different statute allowing temporary tariffs of up to 15% for 150 days, according to the Wall Street Journal. Meanwhile, new U.S. export restrictions on chemicals and fuels to China further heightened trade tensions.
On the geopolitical front, the Kremlin said it had not yet received a response from Ukraine on its proposal for peace talks in Istanbul scheduled for June 2. In the Middle East, Israel accepted a U.S.-backed ceasefire proposal after a second airstrike on Houthi targets in Yemen this month. Hamas, however, rejected the deal, prolonging regional instability.
Traders are also adjusting expectations for U.S. interest rates. Comments from several Federal Reserve officials suggest that rate cuts could still be on the table if inflation falls and labor market strength continues. However, the outlook remains fluid as risks tied to trade, geopolitics, and growth persist.
All eyes now turn to Friday’s inflation print. The PCE data will play a pivotal role in shaping Fed policy expectations and could further influence the trajectory of the U.S. dollar and global risk appetite.
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