Chaos and uncertainty due to Trump's tariffs send the crypto market deep into the red

A U.S. judge ruled yesterday that President Trump must halt his trade war. According to the ruling, there is no "economic emergency" justifying the import tariffs. Nevertheless, the controversial tariffs remain in effect for now. How can this be?

Trump oversteps authority, says judge

The lawsuit was filed by five companies that import goods from countries for which Trump has imposed additional tariffs. They argued that the president exceeded his authority by imposing broad import tariffs under the International Emergency Economic Powers Act (IEEPA) without a demonstrable emergency.

The federal judge ruled in their favor, stating that there was no economic or national emergency justifying the measure. This challenged Trump's authority to take such far-reaching trade actions without Congress.

White House strikes back and files appeal

Following this ruling, the White House announced that it would appeal to the Supreme Court. In a statement, the Trump administration said it is "not the job of unelected judges to determine how a national emergency should be handled."

Subsequently, the White House temporarily received support from the U.S. Appeals Court. It stayed the federal judge's ruling and determined that this stay is "necessary for national security," pending a final ruling on the appeal. As a result, the import tariffs remain temporarily in effect.

Next round on June 5

The court proceedings continue unabated. The next hearing is scheduled for June 5, but it is expected that the case will ultimately land before the U.S. Supreme Court. A final ruling could therefore take months, if not years, to arrive.