US stocks surge, gold plummets! The US International Trade Court blocks the implementation of "reciprocal tariffs," is Trump's tariff war "collapsing halfway"?

The court severely strikes down Trump's tariff strategy, and the boundaries of IEEPA authority face judicial challenges for the first time. According to CCTV News, on May 28 local time, the U.S. federal court blocked the tariff policy announced by President Trump on April 2, ruling that Trump overstepped his authority by imposing comprehensive tariffs on countries that export more to the U.S. than they import. Following the news, U.S. stock index futures quickly surged, collectively rising over 1%. Spot gold briefly fell by $30, with a daily decline of 0.9%, currently reported at $3,259 per ounce The US dollar index rose more than 0.5%. Overlooked Major Benefits Emerge Wallstreetcn previously pointed out that while everyone is focused on the June 1 tariff deadline and Trump's "trade showdown" with the EU, this ruling by the US International Trade Court may be a potential benefit that the market generally overlooks. According to media reports, a three-judge panel of the US International Trade Court explicitly stated in its ruling that Trump's declaration of a trade deficit as a "national emergency" and the imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) exceeded the legal authority granted. The court emphasized that the Constitution clearly grants Congress exclusive power to regulate foreign trade, and the president's emergency powers cannot override this. This ruling stems from two lawsuits: one filed by the nonpartisan organization Liberty Justice Center on behalf of five small American businesses, and the other initiated by 13 states, including Oregon. The companies involved span various industries, from New York liquor importers to Virginia educational tool manufacturers, all of whom believe that the tariffs will severely damage their business operations. Among the series of lawsuits triggered by Trump's executive orders, this ruling is one of his biggest defeats in court to date, as he tests the limits of presidential power through these lawsuits. This ruling can be appealed to the US Court of Appeals for the Federal Circuit and may ultimately be submitted to the US Supreme Court. Currently, at least five other legal challenges against these tariffs are ongoing. Analysis indicates that if Trump loses the case, although the White House may attempt to rely on other legal means to achieve similar objectives, no other law can provide the president with such broad, nearly unrestricted powers as the IEEPA. This also means that once the court issues an injunction, the implemented 10% across-the-board tariffs and the postponed reciprocal tariffs will all be halted, and the ongoing tense negotiations between the US and countries like the EU, Japan, and India will face a reshuffle.