A U.S. trade court blocked most of President Donald Trump’s tar
iffs in a sweeping ruling on Wednesday that found the president overst
epped his authority by imposing across-the-board duties on imports from U.S. trading partners.
The Court of International Trade said the U.S. Constitution gives Con
gress exclusive authority to regulate commerce with other countries th
at is not overridden by the president’s emergency powers to safeguard the U.S. economy.
“The court does not pass upon the wisdom or likely effectiveness
of the President’s use of tariffs as leverage,” a three-judge panel said
n the blanket tariff orders issued by Trump since January. “That use is
impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.”
Insurance industry experts, executives, trades associations, and rating agencies have attempted to assess the w
ide-ranging affec
ts of the tariffs on various lines of business including homeowners, personal and commercial auto, workers compensation, political risk, directors & offi
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cers, aviation, and ocean/inland marine. AM Best also looked at the potential financial exposure to insurers.
Insurance Ind
ustry Contemplates Knock-On Effect of Tariffs to Claims, Consumers
Tariffs Will Negatively Affect Insurance Industry, Says AM Best
APCIA: Tariffs to Hurt Families and Business Owners, Affect Affordability
AM Best: Tariff Uncertainty Could Lead to Credit Rating Changes for Insurers
Financial markets cheered the ruling. The U.S. dollar rallied following the court’s order, surging against currencies such as the euro, yen and the Swiss franc in particular. Wall Street futures rose and equities across Asia also jumped.
The judges also ordered the Trump administration to issue new orders reflecting the permanent injunction within 10 days. The Trump administration minutes later filed a notice of appeal and questioned the authority of the court.
The court invalidated with immediate effect all of Trump’s orders on tariffs since January that were rooted in the International Emergency Economic Powers Act (IEEPA), a law meant to address “unusual and extraordinary” threats during a national emergency.
The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum, using a different statute.
