Prediction: Trump's New Tariffs Won't Stand Up in Court. Consider Buying These 2 International ETFs.
The article argues that President Trump's recent global tariffs are likely to be overturned by courts due to a lack of constitutional authority. It suggests that investors should look past these trade barriers and consider international ETFs like the Vanguard FTSE All-World ex-US ETF to maintain global exposure.
Why it matters
This provides an investment perspective on how legal challenges to trade policy can influence global market strategies.
In July, President Donald Trump announced a new round of global tariffs on 60 countries, but he's already facing a new legal battle. At least 25 states have sued the Trump administration to block the new tariffs. This state-level legal action follows a separate lawsuit filed by the Liberty Justice Center, a legal nonprofit.
Just like the previous batch of Trump tariffs that were overturned by the Supreme Court, it seems like a safe bet that this new round of tariffs will eventually be struck down by the courts. In its February ruling, the Supreme Court effectively said that the president doesn't have constitutional authority to personally impose sweeping tariffs for any reason of his choosing -- Congress is supposed to be involved with creating new taxes.
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