Several recent reports suggest that President Donald Trump's newly imposed tariffs are facing legal challenges and business opposition, which could potentially lead to delays or reconsideration of their implementation:
• Legal Challenges: The Wall Street Journal highlights that President Trump's use of the International Emergency Economic Powers Act (IEEPA) to justify the tariffs is unprecedented and may face legal scrutiny. Critics argue that the law doesn't explicitly authorize tariff implementation, and lawsuits are emerging to challenge this actio. (Source: WSJ)
• Market Situation: According to PANews, market sentiment took a major hit after U.S. President Donald Trump unveiled his proposed tariff policy, heightening fears over global economic stability. On Friday alone, the S&P 500 shed $1.5 trillion in market value, contributing to a staggering two-day loss totaling $3.5 trillion. The downturn was led by sharp declines in major tech stocks, dragging the Nasdaq index down over 20%, from its December peak and officially pushing it into bear market territory. The situation is clearly building a huge pressure on the White House.
• Business Opposition: Reuters reports that U.S. an Vietnamese businesses have jointly urged the Trump administration to delay a planned 46% tarif on Vietnamese goods, citing potential harm to companies and bilateral trade relations. (Source: Reuters)
Several businesses and prominent American business leaders have recently expressed opposition to the newly imposed tariffs, citing concerns over their economic impact:
Businesses Opposing the Tariffs:
• Jaguar Land Rover (JLR): The automaker has temporarily paused its vehicle shipments to the United States in response to the new 25% tariff on imported vehicles. JLR is assessing how to adjust to these new trading conditions, noting that the tariffs could increase the cost of new cars in the U.S. by $5,000 to $10,000 or more. (Source: The Verge)
• Nintendo: The gaming company has postponed U.S. preorders of the Switch 2 console due to the tariffs, reflecting broader concerns in the technology sector about the impact of increased import costs. (Source: THE VERGE)
Business Leaders' Reactions:
• Ken Langone: The billionaire co-founder of Home Depot has publicly criticized the recent tariff implementations, expressing concerns over their potential to harm the U.S. economy. Langone emphasized the need for stable and predictable trade policies to support business growth. (Source: Wikipedia)
• Jamie Dimon: The CEO of JPMorgan Chase has voiced opposition to the tariffs, stating that they contribute to economic uncertainty and could negatively affect the financial markets. Dimon highlighted the importance of free trade and cautioned against policies that might lead to retaliatory measures from trading partners. (Source: WIKIPEDIA)
• Bill Ackman: Billionaire investor Bill Ackman suggested that U.S President Donald Trump might delay the implementation of newly announced tariffs to allow more time for negotiations and to give businesses time to prepare for changes. Ackma believes a postponement could prevent increased uncertainty that might lead to a recession. (Source: CoinTelegraph/Cointine/Brecorder/Coinsurges etc)
These developments suggest that legal and busines pressures are mounting, which could influence the administration to reconsider or delay the tariff implementations.
Potential for Tariff Delays:
While there is significant opposition from various sectors, the current administration has not indicated any plans to postpone or delay the tariffs. President Donald Trump has ruled out delaying new tariffs on imports from Mexico, Canada, and China, stating, "No no. Not right now, no." This stance suggests that, despite legal challenges and business opposition, the tariffs are set to proceed as scheduled. (Source: Mint)
Conclusion:
The opposition from major businesses and influential business leaders underscores the widespread concerr about the potential negative impacts of the tariffs on the .S. economy. However, the administration's firm position indicates that, unless there are significant developments, the tariffs will be implemented as planned.
As the reciprocal tariff is going to be implemented on 09 Apr 25, to monitor potential delays or postponements of these tariffs, we should pay close attention to official statements from the White House and the Office of the United States Trade Representative (USTR) between now and April 9. Additionally, developments from key trading partners, such as China and the European Union, may influence tariff implementations. Engagements with business leaders and economic advisors could also provide insights into possible adjustments.
