TACO MAN & TARRIF DRAMA STEAL NVIDIA'S SHOW
Trump Is Not Having A Good Week!
Markets are ripping higher (with USDJPY) and gold is selling off strongly (as expected) - but not because of Nvidia earnings!!
BREAKING: The Manhattan-based Court of International Trade has blocked President Trump's proposed "Liberation Day" tariffs.
Implications go beyond markets spiking in thin afterhours trading.
as USDJPY & DXY rise, Gold falls nicely from that head & shoulders pattern I spied in advance. ;-)
So now we debate what happens to Trump's ability to NEGOTIATE his important trade deals with other nations, let alone his promises of TARIFF REVENUES that are important to the BUDGET RECONCILIATION BILL in that they were to help offset the debt.
Federal court says Trump exceeded his authority to impose tariffs under IEEPA. - Politico
Granted, already Trump is filing an appeal, and they are a small specialized court where “Most lawyers will get out of law school without knowing that it exists,” but it is still a Federal court with nationwide jurisdiction over tariffs and trade disputes!
This Obscure New York Court Is Set to Decide Fate of Trump’s Tariffs
Catherine Rampell isn't worried:
"Expect a big shift to "sectoral" tariffs in next few days, now that country-wide tariffs struck down Trump admin has been signaling for a while that it intended to rely more heavily on this tariff authority (Section 232), presumably b/c it might be easier to defend in court..."
I made a joke on X but the punchline is a real risk:
What a day! Trump finds out he’s known as TACO man and then they strip him of TARIFF man label too!!
Ohhh he’s gonna cause some pain soon.
He's already causing some to semis today:
"Trump orders US chip designers to stop selling to China" via FT."
That demand came in ONE HOUR before Nvidia reported earnings.
Just a reminder that I wrote about this last earnings...
TRUMP WANTS TO PUNISH NVIDIA
And China:
US to 'aggressively cancel visas for Chinese students’
Suspended sales to China includes specific chemicals NYT
NYT cites two individuals acquainted with the issue on jet engines
US suspends certain sales of aircraft engine technology to China NYT
US to start cancelling some Chinese student visas: Rubio
Oh yeah, and in the past week:
The Supreme Court implied the president’s power to dismiss appointees doesn’t extend to the Federal Reserve
I mean, with all of the above, Trump is not having a good week!!!
How long before Trump escalates trade war tensions in a big way?
I've got VIX falling into 15.74 before a bounce. Then let's see.