A US federal court has ruled that President Donald Trump lacked the authority to impose broad tariffs under emergency powers, stating that only Congress can regulate foreign commerce. The decision stems from lawsuits filed by small businesses and state governments, directly challenging Trump's controversial "Liberation Day" tariffs. While the administration plans to appeal, markets responded positively to the ruling.
The decision adds fuel to an already heated debate. Trump is no stranger to enacting policies that spark uproar, and the April 2 tariff announcement was no exception. Calling it "Liberation Day," Trump unveiled a new round of reciprocal tariffs on global trading partners—only for the US stock market to plunge hours later.
Financial experts have been warning about the consequences of the escalating trade war on the national economy, potentially pushing the US toward a recession. But what exactly is a tariff, and why does Trump favor them so much? Click through the following gallery to find out how the new tariffs may impact you.