California Governor Gavin Newsom (D) on September 28, 2023 (Image: Shutterstock)
Democratic governors and attorneys general quickly embraced Thursday’s two court decisions against President Donald Trump's sweeping global tariffs as validation of their concerns over the economic impact of escalating prices on everyday goods, Politico reported Thursday.
On Wednesday, the U.S. Court of International Trade in New York invalidated Trump’s tariffs, ruling that he lacked the legal authority under the emergency economic powers he referenced when issuing four executive orders earlier this year.
This decision dealt a significant setback to Trump’s broader strategy of using tariffs as a bargaining tool in international trade negotiations. The following morning, a second federal court — this time a D.C. District Court — delivered a similar verdict, ordering the suspension of tariff collections in a case brought by two toy companies. The tariffs are temporarily back in place after a Thursday ruling by the D.C. Court of Appeals, which issued a stay while litigation plays out.
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California Gov. Gavin Newsom (D), whose state was one of over 14 that filed lawsuits challenging the tariffs, was particularly pleased.
During a MeidasTouch podcast Thursday, he said: “It’s raining tacos today," seemingly alluding to the TACO acronym coined by Wall Street investors to describe the volatility surrounding Trump’s shifting tariff policies.
The term — short for “Trump always chickens out” — has reportedly irritated the president.
"Mr. President," a reporter said, "Wall Street analysts have coined a new term called the 'Taco Trade.' They're saying Trump always chickens out on your tariff threats, and that's why markets are higher this week. What's your response to that?"
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In response to the question, Trump explained his China policy and then proceeded to attack the reporter over the question.
"Don't ever say what you said. That's a nasty question," the president said.
"For me, that's the nastiest question."
Colorado Governor Jared Polis (D) also expressed great satisfaction. Speaking to Politico, he emphasized that among the various legal challenges Democrats have launched against Trump’s actions, the dispute over tariffs is “the most substantial for our economy, for our prosperity.”
Meanwhile, the U.S. Court of Appeals for the Federal Circuit issued an emergency order Thursday afternoon pausing a decision made just a day earlier by the U.S. Court of International Trade.
The decision does not block the order for the entire appeal, which is why the Democrats are hopeful that Trump will remain unable to implement the tariff policy.
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