A U.S. federal trade court has blocked most of President Trump's sweeping tariffs,
but the Trump administration is appealing the decision.
So how significant will this ruling prove to be?
And what impact will it ultimately have on Trump's trade policies?
I'm Alison Nathan, and this is Goldman Sachs Exchanges.
For today's episode, I'm speaking with my colleague Alec Phillips,
chief U.S. political economist in Goldman Sachs Research.
Alec, welcome back to the program.
Thanks.
Thanks for making yourself available on such short notice.
Sure.
Another big development, it seems, as we sit here on Thursday.
Just to recap,
last night there was a court ruling that seemed to upend much of Trump's proposed tariff policies.
So first, Alec, set the stage for us.
Explain in broad strokes what the court said.
and why it's important right so what the court said and to be clear this was a three-judge panel on the court of international trade which is like a district court so it's the lower level court what the panel said was that these tariffs are essentially so large and unlimited that it's hard to reconcile that with the idea that the administration has authority to impose tariffs like that,
given what's called the non-delegation doctrine,
essentially the idea that Congress has the power to impose tariffs.
They can delegate certain powers to the administration, but only with intelligible limits.