Tariff Uncertainty
Investors have been breathing a sigh of relief as tariffs seem to be getting resolved country by country. Well, I'm afraid we will need to continue to hold our breath because there is a dispute whether or not the President has the authority to define tariffs levels for countries.
I bring this up because it's important to not ever believe things will finally calm down as it relates to anything related to the economy, markets and politics. Truth be known, headlines will emerge week after week which will call in doubt everything that we believe. Investing with this uncertainty in mind is the hallmark I think of successful investors.
Waiting for an all-clear signal set investors up for disappointment and confusion. There's always something to worry about and that has never been truer than it is now. We invest based on that assumption.
That is not to say that we are not optimistic about opportunities; we are. But it's important not to be seduced by headlines blaring that all is clear and everything's fine. The world changes rapidly and we need to understand. That is the one constant we will need to contend with as investors.
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“A federal appeals court on Thursday sharply probed President Trump's use of an emergency powers law to impose sweeping tariffs on nearly every U.S. trading partner, as higher duties are set to snap into place Friday for countries that have not yet reached trade deals with the administration.
The 11 judges on the U.S. Court of Appeals for the Federal Circuit heard arguments in the Trump administration's appeal of a ruling from a trade-focused lower court that found the president did not have the authority to hit foreign nations with 10% tariffs under the International Emergency Economic Powers Act, or IEEPA.
While a three-judge panel on the U.S. Court of International Trade blocked the sweeping duties that the president assessed on most countries, the Federal Circuit temporarily reinstated the tariffs while it considers the dispute.
The legal fights before the appeals court were brought by a group of 12 states and five small businesses, and their cases are a major test of the centerpiece of Mr. Trump's economic agenda. The Federal Circuit's decision is likely to be appealed to the Supreme Court. A ruling in favor of Mr. Trump from the conservative court is far from certain.
As arguments got underway, several judges on the appeals court peppered Brett Shumate, a Justice Department lawyer, about whether IEEPA authorizes the president to impose tariffs.”
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Source:
https://www.cbsnews.com/news/trumps-tariffs-poised-for-major-test-before-federal-appeals-court/
