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Trump's trade deals and tariffs are on the chopping block in court. What happens next

1. Trump's tariff powers face legal challenges potentially affecting trade agreements. 2. A federal appeals court will hear a lawsuit on Trump's tariff authority. 3. The Court previously ruled against Trump's tariffs, complicating his legal strategy. 4. Experts predict Trump's tariffs may be invalidated, impacting trade deals. 5. The Supreme Court may ultimately decide on the tariffs' legality.

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FAQ

Why Bearish?

Uncertainty regarding tariff legality undermines market confidence, leading to potential declines. Historically, uncertainty around trade policies has correlated with negative market movements.

How important is it?

Legal challenges to tariffs directly impact trade, affecting S&P 500 companies reliant on international markets.

Why Short Term?

Legal decisions are expected soon, likely affecting market reactions in the near term. Swift court actions have historically led to immediate market volatility.

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