The BLUF - June 3rd

Good morning everyone,

This is Atlas, and you’re reading the Bottom Line Up Front, where we cover the top geopolitical stories from around the world every Tuesday!

Today’s topics:

• Analysis: Court Of International Trade Revokes Trump’s Tariffs

• Russia’s ‘Pearl Harbor’ Hangover

• EU Mulls Black Sea Security Hub

Analysis: Court Of International Trade Revokes Trump’s Tariffs

_{By: Jose Garcia, Residing Fellow at Atlas}

The Court of International Trade (CIT) has revoked the Trump-era tariffs, concluding that the measures exceeded statutory limits on presidential emergency powers. Three judges held that the Administration abused its authority, though the tariffs remain in place until 9 June while the government appeals. The decision—second in two months against the tariff program—highlights the judiciary’s role in checking executive overreach.

IEEPA
The tariffs were imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, which lets a president regulate specific foreign transactions after declaring a national emergency. Over decades, Congress expanded IEEPA, yet the statute still requires consulting lawmakers “at every possible moment.” The CIT found the Administration largely ignored that obligation, framing the case as a textbook abuse of delegated authority.

Other Options
If the appeal fails, the White House could still levy duties under Sections 301, 232 or 122. Those paths, however, would slow implementation and curb the rapid, unilateral escalation seen under IEEPA. The CIT’s ruling therefore narrows—but does not eliminate—the president’s tariff toolbox, pushing future actions toward more measured, statute-specific justifications.

Market Impact
Bond markets reacted immediately: confidence that tariff revenue would trim the federal deficit fell, prompting expectations of additional Treasury issuance. Thirty-year yields jumped above 5 percent, raising fears of slower growth. Analysts also note widening “cracks” in the U.S. bond market as foreign demand fails to keep pace with a $29 trillion national-debt load.

Negotiations
The CIT ruling weakens Washington’s leverage in ongoing trade talks. Opposition groups will likely cite the decision to challenge the Administration’s hard-line strategy, while the White House may pivot to Sections 301 or 232 tariffs to maintain pressure on foreign counterparts. Either way, the judgment underscores that durable trade policy must rest on solid statutory footing, not improvised emergency powers.

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