Larry Kudlow lauds Trump's "reciprocity idea" with tariffs, calling it "top-notch"
Trump tariffs lawsuit by California tossed out by federal judge, based on jurisdiction matter
Larry Kudlow, host of FOX Business' "The Bottom Line," discusses President Donald Trump's steel tariffs and more.
A federal judge in San Francisco, appointed by President Joe Biden, dismissed California's lawsuit challenging President Trump's tariffs on Monday, citing a jurisdictional issue.
Judge Jacqueline Scott Corley sided with the Trump administration in transferring the case from the U.S. District Court for the Northern District of California to the U.S. Court of International Trade, based in New York. This decision denies California Governor Gavin Newsom and Attorney General Rob Bonta the chance to contest the legality of the tariffs in their home district, opening up a path for the two Democrats to appeal the ruling to the famously liberal U.S. 9th Circuit Court of Appeals.
ESCALATION IN TARIFF BATTLE AS TRUMP APPEALS SECOND COURT DEFEAT
California Governor Gavin Newsom announced the lawsuit against Trump's tariffs during a news conference at Gemperle Orchard on April 16, 2025, in Ceres, California. The Democrats argued that Trump's tariffs, issued under the International Economic Emergency Powers Act, violate the separation of powers doctrine because they were not approved by Congress. However, the Trump administration maintains that these levies address a national emergency due to the trade deficit with other countries.
Judge Scott Corley's decision came after two rulings last week rejected the legality of Trump's tariffs plan. A three-judge panel on the New York-based trade court and an Obama-appointed Washington D.C. District Court judge both concluded that Trump's tariffs exceeded the authority granted under the International Emergency Economic Powers Act.
California Attorney General Rob Bonta issued a statement on Monday, celebrating the judge's decision to grant California's request for dismissal, allowing them to appeal the ruling to the Ninth Circuit Court of Appeals.
TRUMP TARIFF PLAN FACES SHAKY FUTURE AS COURT BATTLES INTENSEIFY
"Today, our lawsuit challenging the Trump Administration's disastrous and illegal tariffs was allowed to remain in California pending our incoming appeal," Bonta said. "We strongly believe this case belongs in federal district court and are pleased the court considered our wishes in dismissing this case, allowing California to appeal to the Ninth Circuit."
Newsom's press office stated that they "disagree" with the court's procedural grounds for the dismissal, citing a federal court in D.C.'s ruling against the tariffs as evidence.
President Trump's economic plan includes "reciprocal" tariffs to address trade deficits with other countries. Trump's tariff threats have garnered the nickname "TACOS" – an acronym coined by a Financial Times columnist to mean "Trump Always Chickens Out," – among some Wall Street and Democratic circles who think the tariffs may never materialize.
However, during an appearance on the MeidasTouch podcast, Newsom expressed confidence in the court battles against the tariffs, stating, "It's raining TACOS today. It's not a good day for Donald Trump and his central economic program."
[1] Reuters, U.S. Court of International Trade rules against Trump's fentanyl tariffs, May 28, 2025.[2] AP News, Trump appeals court's rejection of fentanyl tariffs, May 28, 2025.[3] Los Angeles Times, Judge rules Trump's sanctions against Mexico not authorized under trade law, May 19, 2025.[4] Law360, Calif. Suit Over Trump Tariffs Can Proceed in Federal Court, May 28, 2025.
- The battle over President Trump's tariffs continues to escalate in the face of policy-and-legislation challenges, with California's lawsuit being dismissed by a federal judge but allowing for an appeal to the politics-influenced U.S. 9th Circuit Court of Appeals.
- The economics of the tariffs plan, including Trump's "reciprocal" tariffs to address trade deficits, are met with skepticism in some Wall Street and Democrat circles, who question their feasibility and view them as vulnerable to war-and-conflicts in the courts.
- As banking institutions consider the potential impact of ongoing trade policies and legal battles on general-news headlines, the future of Trump's tariff plan seems shaky, with appeals and appeals in federal courts placing the plan's viability under intense scrutiny.
