Shortly before the federal appeals court decision to stay the lower court intervention, National Economic Council Director Kevin Hassett appeared on Fox Business with Maria Bartiromo to discuss the frustrating trade court decision and the pending legislation on budgets and taxes.

Director Hassett is always a solid analytical mind to follow because his job is to look into the future and see if current alignment of economic policy retains the objective of economic growth, and he does it well.  Within the interview a key point made by Hassett on the trade/tariff conflict with the court is that USTR Jamieson Greer has multiple legal pathways to support the intent of the tariffs as applied.

This is a point CTH will continue to make; both the USTR and the Dept of Commerce Secretary have alternate legal trade tools that support the tariffs.  The bottom line is that whether IEEPA is used or Sec.301/302 are used the tariff outcome remains the same, the only difference is the amount of time for the countervailing duty to trigger; put another way, ‘optimal solutions.’  WATCH:

Despite the noise and media drumbeat, Kevin Hassett continues to carry the maganomic agenda forward with a smile.  He is able to do this because all of the economic policy is grounded in America-first realism.  It can be achieved, and it will be achieved, entirely because it is achievable. Remember that!

When you reach frustration, ask yourself, “is there bread in the kitchen?”  If yes, then focus on solving the immediate non-critical problem; do not allow the dark imaginings to disrupt your focus. It’s the guys like Kevin Hassett who are keeping the bread in the kitchen.

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Like I said last night, the Trump team followed their legal due diligence in several aspects of the tariff/trade deficit reset strategy, and it did not appear the New York trade court looked at any of the supportive material from the USTR and the Dept of Commerce.

Today, a full panel of U.S. Court of Appeals for the Federal Circuit granted a “stay” and paused the lower court ruling pending full appeal outcome and possible Supreme Court intervention.  [Ruling pdf Here]  The President Trump trade tariffs remain in place, and the ridiculous court-ordered refunding of previously collected tariffs is set aside.

[Source pdf]

The court is suspending the lower court decision until the appeals motions are filed and reviewed.  The multinational corporations have until June 5th to file their responses to the appeal, and the Trump administration has until June 9th to file their full appeal brief.

VIA CNBC – A federal appeals court on Thursday granted the Trump administration’s request to temporarily pause a lower court ruling that struck down most of President Donald Trump’s tariffs.

The Trump administration had earlier told the U.S. Court of Appeals for the Federal Circuit that it would seek “emergency relief” from the Supreme Court as soon as Friday if the tariff ruling was not quickly put on pause.

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We all knew the system would strike back. There are trillions at stake.

UPDATES AT BOTTOM: A federal trade court based out of New York has just ruled in a three-judge decision that President Trump does not have the authority within the International Emergency Economic Powers Act (IEEPA) to initiate emergency trade tariffs.  [The Ruling is HERE]

WASHINGTON DC – A federal trade court ruled President Trump didn’t have the authority to impose sweeping tariffs on virtually every nation, voiding the levies that have sparked a global trade war and threatened to upend the world economy.

The decision on Wednesday from the Court of International Trade blocked one of the Trump administration’s most audacious assertions of executive power, under the International Emergency Economic Powers Act of 1977, and sets the stage for a possible appeal by the White House.

“The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder,” a three-judge panel wrote. (link)

“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the court wrote.  The court also ordered that the tariffs that the Trump administration has collected so far be “vacated.”

UPDATE #1: I’m tearing through this ruling right now and I can find several structural flaws in the 3-judge panel decision.

[From Page 6, pdf] “…[…] in 1962, Congress delegated to the President the power to take action to adjust imports when the Secretary of Commerce finds that an “article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.” Trade Expansion Act of 1962, Pub. L. No. 87-794, § 232(b), 76 Stat. 872, 877 (codified as amended at 19 U.S.C. § 1862(c)(1)(A)). This delegation is conditioned upon an investigation and findings by the Secretary of Commerce, and agreement by the President. See id. Section 301 of the Trade Act of 1974, as amended, requires that the U.S. Trade Representative (“USTR”) take action, which may include imposing tariffs, where “the rights of the United States under any trade agreement are being denied” or “an act, policy, or practice of a foreign country” is “unjustifiable and burdens or restricts United States commerce.” 19 U.S.C. § 2411(a)(1)(A)–(B). The USTR may impose duties also where the USTR determines that “an act, policy, or practice of a foreign country is unreasonable or discriminatory and burdens or restricts United States commerce.” Id. § 2411(b)(1). This power is conditioned on extensive procedural requirements including an investigation that culminates in an affirmative finding that another country imposed unfair trade barriers under § 2411(a)(1)(A) or (B) or § 2411(b), and a public notice and comment period. See id. § 2414(b).”… [source]

I’ve just gotten started, but that citation is just one reason why the ruling can be overturned on appeal.

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President Donald Trump participates in the swearing-in ceremony for Interim USAO for the DC office, Jeanine Pirro.  The media question segment begins at 8:45 of the video below and there is a lot of news within the press portion.

The first question surrounds Russia and the recent statements from the Kremlin.  President Trump says he is not able to give opinion on the position of Russian President Vladimir Putin at the moment and will await approximately two weeks until the “terms” are received from Russia.  President Trump directed attention to Emissary Steve Witkoff who is coordinating with both Russia and Hamas in Gaza on both issues.

When pushed on the terminology being used by himself and the Russians, President Trump deferred larger more detailed opinion.

Regarding the Big Beautiful Bill and the public criticism from Elon Musk, President Trump notes the bill contains some aspects he does not like, but it required some give and take to get through the House.  The Senate priorities may be different from the House priorities and those details are being worked on.  There is “zero democrat support” and that makes things more challenging for Majority Leader Thune and Speaker Mike Johnson.

On the subject of tariffs, President Trump states the negotiations with China and Europe continue with abundant leverage to ensure the best interests of the USA are contained within the results.  As noted by Trump “it takes a number” to begin the discussion and from that point things progress.

Back to Ukraine, President Trump is willing to meet with Volodymyr Zelenskyy in Geneva, but “it takes two” and Russian participation is needed in order to get to a ceasefire.  Further discussions with Zelenskyy are possible, but ultimately President Trump needs Vladimir Putin.  As far as sanctions against Russia are concerned, President Trump will only consider them as part of a negotiation point if he reaches the conclusion that no other options are possible.

The second important revelation question surrounds Iran, when President Trump was asked if he warned Israeli Prime Minister Benjamin Netanyahu against taking “some sort of [military] actions against Iran.”  President Trump said he would be honest and that yes, he did tell Netanyahu it would be “inappropriate” at this point of the negotiations to attack or do something provocative because he is confident a deal with Iran could be made.  This will make the Israeli lobby very unhappy.

Currently there is a war of influence within the online conservative media space between the influencers who receive funding from Qatar and the influencers who receive funding from Israel.  This is creating division within the base MAGA movement.

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I’m sorry, but when I finally got around to review the appearance of King Charles in the Canadian Parliament, I could not get past the optics on display.

My background thoughts are HERE, but boy howdy does this picture encapsulate the dynamic.

[VIDEO IS HERE]

And yes, King Charles waxed eloquently in both French and English about the terrible issue that Canadian sovereignty is facing.

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King Charles is arriving in Canada today in advance of an opening speech he will deliver to the Canadian Parliament.   Canadian Prime Minister Mark Carney invited King Charles to attend, and while the media portray the visit as mostly symbolic there is no doubt the substantive issue for Canada is the economic dependency on the USA and how the U.K can bolster the position of Canada against that threat.

Everything is always about the money of the thing, this dynamic between the U.K and Canada is no different.  What we would call the ‘western’ global financial system is contingent upon all U.S. allies retaining the United States as their consumer base and stable currency center.  President Trump has exposed the vulnerability of Canada as he confronts the parasitic relationship {GO DEEP}.

In advance of the U.K positioning itself as the skirt behind which Canada can hide from the horrible Trump, British Prime Minister Keir Starmer extended an invitation for President Trump to attend a state visit in his honor later this year.  The effusive praise from Starmer during the White House meeting was keenly strategic, so too was their urgency in creating the first new-era free trade agreement with the USA.

Perhaps President Trump’s embrace of Qatar, the UAE and Saudi Arabia should be viewed through this financial prism where the EU, U.K and Canada will ultimately go to war (together) against the efforts of President Trump.  Within the partnership of the UK, EU and Canada, the Snow Mexicans are the weakest link, the most vulnerable to collapse from Trump’s economic policy.

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Those who followed the first-term trade negotiations will likely remember the challenges of dealing with the European Union and their entrenched dependency on retaining the Marshall Plan system; a one-way tariff process that enabled Europe to rebuild after World War II.

Unfortunately, as with all long-term financial subsidies, the beneficiary becomes dependent and retaining benefit is their only objective.

Former Commerce Secretary Wilbur Ross spent the majority of his time focused on trying to negotiate with the EU to remove these ridiculous trade benefits that have long exhausted their usefulness.  Enough is enough.

Term-two Commerce Secretary Howard Lutnick has the same regional assignment formerly held by Wilbur Ross, with U.S. Trade Representative Jamieson Greer in full support.

Treasury Secretary Scott Bessent has ASEAN nations as his primary regional focus, Lutnick’s primary region is the EU and President Trump is personally attentive to China and the USMCA.  USTR Greer then goes to the primary with the closest deal under consideration and organizes the paper construct, the technical aspects.  It’s an overall similar arrangement to term-1 only with a much bigger scope.

As would be expected from historic reference points in trying to break this insufferable one-way Marshall Plan system, the EU is once again operating in bad faith and will not give up their status.  When President Trump says the entire reason for the EU to form was to ensure their retention of this Marshall Plan benefit, he’s not wrong.  That’s the brutally honest background.

President Trump has announced today that a 50% tariff rate will be applied toward all EU imports until such a time as they come to the negotiation process willing to let go of their economic model dependent on the one-way benefit.  There really is no other way to break the Gordian trade knot, other than to cut it – forcefully.

President Trump (via Truth Social) – “The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with. Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!”

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Treasury Secretary Scott Bessent appears on NBC Meet the Press to discuss the current status of the trade negotiations, tariffs and pending trade deals. In addition, Secretary Bessent outlines the construct of President Trump’s tax proposals and the intended benefits therein to middle-class working Americans.  WATCH (Transcript Below) 

[Transcript] KRISTEN WELKER: Welcome back. There are new economic warnings after the credit ratings agency, Moody’s, downgraded the United States’ credit rating one notch from its AAA rating. Moody’s citing concerns over the nation’s rising debt. It comes as President Trump’s tax bill suffered a setback in Congress this past week. Joining me now is Treasury Secretary Scott Bessent. Secretary Bessent, welcome back to Meet the Press.

SEC. SCOTT BESSENT: Kristen, good to see you. Thanks for having me on.

KRISTEN WELKER: It’s wonderful to have you on after a long foreign trip. Thank you for being here. Let’s start right there with Moody’s downgrading the nation’s credit rating. And they do cite the debt. I want to read you a little bit of what Moody’s says. It says, quote, “If the 2017 Tax Cuts and Jobs Act is extended, which is our base case, it will add around $4 trillion to the deficit over the next decade.” Several Republicans, Mr. Secretary, are citing similar concerns. Does the president’s tax bill need to do more to address the nation’s debt and deficit?

SEC. SCOTT BESSENT: Well, Kristen, first – first of all, I – I think that Moody’s is a lagging indicator. I think that’s what everyone thinks of credit agencies. Larry Summers and I don’t agree on everything, but he said that’s when they – they downgraded the U.S. in 2011. So it’s – it’s a lagging indicator. And just like Sean Duffy said with our air traffic control system, we didn’t get here in the – in the past 100 days. It’s the Biden administration and the spending that we have – have seen over the past four years. We inherited 6.7% deficit to GDP, the highest when we weren’t in a recession, not in a war. And we are determined to bring the spending down and grow the economy.

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President Donald Trump sits down with Bret Baier to discuss the results of his trip to the middle east.  President Trump discusses investments in America, trade negotiations, the ongoing discussions with Iran and plans to solve the conflict between Hamas and Israel in Gaza.

President Trump outlines Israeli Prime Minister Benjamin Netanyahu as an “angry man,” albeit rightly angered by the attack on Israel on October 7th. President Trump’s remarks about Iran come as the Iranian regime is beginning to indicate a willingness to concede to Trump’s requirements.  It’s all about the economics of the thing, the Trump Doctrine.  WATCH:

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THE TRUMP DOCTRINE – What you will notice from President Trump’s responses to questions during foreign leader engagements is the unique nature of his honesty.   In the most consequential of ways, President Trump is the most consequential foreign policy leader in generations.   We forget that during Trump’s first term in office, the headlines about North and South Korea were not about conflict, but rather about the possibility of unification on the Korean peninsula.

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A meeting between President Trump and Russian President Vladimir Putin brings with it the focus of the entire world.  For a myriad of geopolitical reasons both domestically and abroad, there are ‘trillion-dollar’ interests who want to keep them apart.

Earlier today, fearing that President Trump might actually travel to Turkey, NATO Secretary Mark Rutte and Senator Lindsey Graham quickly arranged dispatch to intercept and participate.  The global intelligence apparatus wants to keep Trump and Putin apart, so too does the NATO alliance, the CIA, the U.K and every other influence agent in partial control of the USA proxy war against Russia using Ukraine.

A decade of carefully scripted narratives against President Trump and any forward leaning Russian foreign policy sits in the background, with an almost incalculable number of opposition elements aligned against President Trump forming any positive USA-Russia relationship.  There’s quite literally almost no place on the planet where President Trump and Vladimir Putin could meet without hearing the drumbeat of opposition against their assembly.  Almost….

For President Trump and Vladimir Putin to join in strategic interest is to disrupt the global order of things, and I do mean everything.  The military industrial complex, the global banking system, the World Economic Forum assembly, the multinational stock markets, the world trade system, the entire European continent, Asian continent, Australian continent, African continent and North American continent, as well as every conflict therein, could be impacted by joint decisions between Vladimir Putin and Donald Trump.  To say the stakes are high, would be to understate the scale of the dynamic.

In this interview, Secretary of State Marco Rubio seems to nurture the seeds placed by President Trump in his earlier remarks about sitting down with Vladimir Putin to hammer out the details of a ceasefire agreement between Ukraine and Russia.  The entire world pretends not to know that all of the military engagement within Ukraine and around Ukraine, is essentially a proxy war between the USA and Russia. A potential meeting between President Trump and Vladimir Putin destroys that framework.  This is heavy stuff.  WATCH:

Keep in mind that President Trump has been speaking to Vladimir Putin directly via phone, and consequentially through his emissary Steven Witkoff.  Vladimir Putin has been speaking to President Trump through the same channel.

A face-to-face meeting was always going to happen, the only part of the dynamic we were awaiting was how the two presidents were going to coordinate the meeting of consequence, and how would President Trump ditch the U.S. control elements.

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