Economy
US trade court blocks Trump’s tariffs, cites he exceeded powers
A U.S. trade court blocked most of President Donald Trump’s tariffs in a ruling Wednesday that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners.
The news boosted markets on Thursday, even as the White House appealed against the decision by “unelected judges.”
The Court of International Trade said the U.S. Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president’s emergency powers to safeguard the U.S. economy.
It said that the court does not read the International Emergency Economic Powers Act (IEEPA) to confer such “unbounded authority.”
“The court does not pass upon the wisdom or likely effectiveness of the president’s use of tariffs as leverage,” a three-judge panel said in the decision to issue a permanent injunction on the blanket tariff orders issued by Trump since January. “That use is impermissible not because it is unwise or ineffective, but because federal law does not allow it.”
This opinion marks a significant setback for Trump as he bids to redraw the U.S. trade relationship with the world by forcing governments to negotiate at the table through tough new tariffs.
Trump’s global trade war has roiled financial markets with a stop-start rollout of import levies to punish economies that sell more to the U.S. than they buy.
Trump argued that the resulting trade deficits and the threat posed by the influx of drugs constituted a “national emergency” that justified widespread tariffs.
But the three-judge Court of International Trade ruled that Trump had overstepped his authority, barring most of the restrictions announced since he took office in January.
The White House slammed the ruling, arguing that “unelected judges” have no right to weigh in on Trump’s handling of the issue.
“President Trump pledged to put America first, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness,” Trump’s spokesperson, Kush Desai, said.
Attorneys for the Trump administration promptly filed to appeal against the ruling on Wednesday.
One of Trump’s closest White House aides, Stephen Miller, took to social media to decry a “judicial coup” that he said was “out of control.”
Trump unveiled sweeping import duties on most trading partners on April 2, at a baseline 10% plus steeper levies on dozens of economies, including China and the European Union.
The ruling also quashes duties that Trump imposed on Canada, Mexico and China separately using emergency powers.
Some of the turmoil was calmed after he paused the larger tariffs for 90 days and suspended other duties, pending negotiations with individual countries and blocs.
Asian markets rallied on Thursday after the ruling, while European and U.S. futures also pointed to early gains. Japan’s tariffs envoy Ryosei Akazawa said as he left for a fourth round of talks in Washington that Tokyo – reeling from tariffs on cars – would study the ruling.
The judges also ordered the Trump administration to issue new orders reflecting the permanent injunction within 10 days. The Trump administration, minutes later, filed a notice of appeal and questioned the authority of the court.
The court invalidated with immediate effect all of Trump’s orders on tariffs since January that were rooted in the IEEPA, a law meant to address “unusual and extraordinary” threats during a national emergency.
The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum, using a different statute.
The decisions of the Manhattan-based Court of International Trade, which hears disputes involving international trade and customs laws, can be appealed to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and ultimately the U.S. Supreme Court.
‘Extraordinary threat’
The federal trade court ruled in two separate cases – brought by businesses and a coalition of state governments – arguing that the president had violated Congress’s power of the purse.
“The question in the two cases before the court is whether the International Emergency Economic Powers Act of 1977 (IEEPA) delegates these powers to the president in the form of authority to impose unlimited tariffs on goods from nearly every country in the world,” the three-judge panel wrote in an unsigned opinion.
“The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder.”
The court, which adjudicates civil cases arising from trade disputes, said that any interpretation of the IEEPA that “delegates unlimited tariff authority is unconstitutional,” according to court documents.
The IEEPA authorizes the president to impose necessary economic sanctions during an emergency “to combat an unusual and extraordinary threat,” the bench said.
The ruling gave the White House 10 days to complete the bureaucratic process of halting the tariffs.
Gregory W. Meeks, the top Democrat on the House Foreign Affairs Committee, said the ruling confirmed that “these tariffs are an illegal abuse of executive power.”
“Trump’s declaration of a bogus national emergency to justify his global trade war was an absurd and unlawful use of IEEPA,” he said.
The Justice Department has defended Trump’s trade strategy in court, insisting that the judiciary has very limited authority over his actions and sparking criticism that the White House was attempting to usurp the power of the other branches of government.
Trump has claimed that Americans will reap the benefits of his trade posture, pointing to early successes in deals struck with the U.K. and with China, the world’s second-largest economy.
However, analysts warned that the cost of the tariffs will likely be passed on to U.S. consumers, raising inflation and potentially leading the U.S. central bank to hold interest rates higher for longer, further affecting financial markets.
Companies of all sizes have been whipsawed by Trump’s swift imposition of tariffs and sudden reversals as they seek to manage supply chains, production, staffing and prices.
If it stands, the ruling blows a giant hole through Trump’s strategy to use steep tariffs to wring concessions from trading partners. It creates deep uncertainty around multiple simultaneous negotiations with the EU, China and many other countries.
However, analysts at Goldman Sachs noted the order does not block sector-specific levies and there were other legal avenues for Trump to impose across-the-board and country-specific tariffs.
Saudi Arabia has restarted operations at its vital East-West pipeline and could resume exports from the Red Sea port of Yanbu later Tuesday, a report said, as signs mount of an increase in Middle Eastern oil flows.
The resumption of supplies Tuesday helped to drive selling on global oil markets. Global oil benchmark Brent crude fell by more than $2 a barrel towards $97, its lowest since Sept. 8.
Drone attacks Saudi Arabia said were launched from Iraq forced the kingdom to shut the pipeline on Sept. 11, halting crude loadings at the key Yanbu port.
Since the U.S.-Israeli war on Iran disrupted oil flows from Saudi Arabia and its Gulf neighbors through the Strait of Hormuz, Riyadh has been using the pipeline to reroute around 4 million barrels per day, around 4% of global supply, to Yanbu.
Full resumption could take weeks
The pipeline was pumping at a low rate after its restart, Reuters reported, citing sources briefed on the matter.
Aramco was seeking to get the pumping rate back to 4 million bpd, one of the sources said. The pipeline has a capacity of 7 million bpd.
Reaching a rate of 40% of capacity will take a couple of days and a full restart will take 6 to 8 weeks, a security source said. A separate oil industry source said a return to full pumping rates would take up to six weeks.
Three pumping stations serving the pipeline were damaged in the drone attack, according to satellite imagery and industry sources. The line is serviced by 11 pumping stations and two separate pressure relief stations, according to industry assessments.
The pipeline will resume crude supply to Aramco refineries located on the Red Sea coast, one of the sources said, adding that one cargo was scheduled to load at Yanbu later Tuesday. The person said it would be bound for China.
Traders were getting ready for Saudi oil loadings by moving tankers to Egypt’s Mediterranean Port Said for ship-to-ship transfers and also to Sidi Kerir, another two trading sources said.
Oil prices have also dropped this week after Iran said it could reopen the Strait of Hormuz within seven days and because Saudi Arabia has loaded more ships at its Ras Tanura port, raising expectations of increased exports through the Strait.
Türkiye’s stock exchange will replace more than a quarter of the constituents of its benchmark BIST 100 index, it said Tuesday, a move announced as regulators seek to ensure market stability following a liquidity crunch caused by a sell-off in investment funds.
The Borsa Istanbul did not provide a reason for removing index constituents, which will be effective from next month in the biggest reshuffle since the stock exchange announced new market structure rules six years ago.
Authorities intervened last week to shore up market stability after the liquidity crunch at investment funds triggered a sharp sell-off in the benchmark stock index, including demanding the liquidation of some investment funds.
They have also detained people as part of an investigation launched after some funds defaulted on redemption requests.
The benchmark index was down 0.23% at 10:11 a.m. GMT Tuesday, stabilizing so far this week after dropping about 8% last week.
Regulators also this month updated how they calculate free-float rates, which left out some fund holdings.
Financial services company Destek Finans Faktoring and savings financing firm Katılımevim, which have been among the companies at the center of suspicious share dealings, will leave the BIST 100, the statement from the exchange said.
Conglomerate Anadolu Grubu Holding and fast-food retailer TAB Gıda will return after being removed in the previous period, it added.
Esenboğa Elektrik, Işıklar Enerji Yapı Holding and Odine Teknoloji, which joined the BIST 100 in the previous quarterly reshuffle, will also be removed.
Destek Finans will also exit from the BIST 30, while TR Anadolu Metal will join.
BIST 30 companies are exempt from the new concentration limits, and a stock’s removal will require funds to reduce their holdings.
Healthier pricing
Onurcan Bal, an investment adviser at brokerage Gedik Yatırım, said the latest changes announced by Borsa Istanbul also include adjustments to shares of companies being removed, such as Işıklar Energy, Izdemir Energy, Kiler Holding and Odine Teknoloji, which had recently come under pressure and recorded floor-price trading.
“For the period ahead, when investors look at the indices and the market, they will be able to see healthier pricing, with the indices serving more clearly as the main benchmarks,” Bal told Reuters.
Cemal Demirtaş, deputy general manager responsible for research at Ata Yatırım, said the index changes would help lead to healthy functioning of the market and restoring investor confidence.
He said he expected further steps soon to support the healthy functioning of the fund market and Borsa Istanbul.
Fund investigation
The Capital Markets Board (SPK) last week mandated Işbank and Ziraat Bank to oversee the liquidation of 131 investment funds managed by seven portfolio management companies, including Tera Portföy, Pusula Portföy and Hedef Portföy, on the TEFAS electronic fund trading platform.
These funds hold large positions in stocks such as Destek Finans that are being removed from the indexes.
Market segment criteria changed
Borsa Istanbul has also added new criteria for companies seeking inclusion in the BIST 30 and BIST 100 indices.
Shares included in the BIST 30 and BIST 100 must be traded on the Star Market. Under a directive amended Monday, companies traded on the Star Market will now also be assessed based on the volatility of their share prices and the size of their equity.
Companies seeking to be listed on the Star Market will be assessed on whether they fall within the highest volatility bracket, with the threshold set at a maximum of 10%.
In addition, companies listed on the Star Market will be required to have equity above the median equity value of all companies subject to the assessment.
Bal at Gedik Yatırım said the changes mean that stocks characterized by excessive volatility and sharp price movements may fail to meet the Star Market criteria, while also limiting their ability to be included in major benchmark indices.
“From this perspective, we believe the regulation is not merely a change to the market-segment classification. It could also indirectly contribute to the structure of key benchmark indices such as the BIST 30, BIST 50 and BIST 100, which are important in terms of representing the broader market,” Bal said.
Bal said the Star Market was the most important segment of Borsa Istanbul’s equity market in terms of trading volume and the market size of listed companies.
“Therefore, taking excessive volatility in price movements into account when determining which companies qualify for the segment can be viewed as a positive development, as it could support more balanced price formation and make the Star Market a healthier benchmark for investors,” he said.
Europe needs to reconsider its trade relations with China as the imbalance between the two sides continues to grow, the European Union Chamber of Commerce in China warned on Tuesday, marking the latest in a series of statements highlighting the gap.
“I think what concerns us (is) that if you see these movements here it gives rise to some fundamental questions about trade,” the organization’s president Jens Eskelund said in Beijing.
Trade, when done right, creates value and efficiency, he said. “But if you are in a situation suddenly where trade is only creating value for one party and not the other, then of course the question becomes: why trade?”
Eskelund pointed to China’s trade surplus with Europe, estimated at around 1 billion euros ($1.15 billion) a day. The chamber has also long criticized competitive conditions in China.
According to Eskelund, the issue is not only whether European companies can succeed in China, but also whether the broader trade relationship remains stable.
“There needs to be a win also for Europe, and that’s what we need to get to,” he said.
Eskelund said there was growing agreement in Europe over the challenge China poses to European industry.
He also warned that China may not yet fully understand that attitudes are changing in Europe in a way that could ultimately allow it to take action.
Brussels and Beijing are currently negotiating over trade disputes, with possible solutions expected in October. New EU tariffs have also been discussed.
In a new position paper containing 1,096 policy recommendations, the chamber, which represents more than 1,600 EU companies operating in China, said some of the security concerns harboured in Beijing and Brussels were similar.
The EU is also developing a policy framework aimed at safeguarding its autonomy, industrial resilience and competitiveness, the report said.
A “healthy balance” between areas where economic security is a priority and those where greater openness for businesses is possible could benefit both economies, it added.
Türkiye expects to see its total trade with the U.S. surging by more than 10% this year to the level of around $42 billion to $43 billion, a top official said on Monday, reiterating the long-term goal of $100 billion.
“Our bilateral trade volume exceeded $38 billion last year. This year, we expect our total bilateral trade to increase by more than 10% and reach approximately $42 billion-$43 billion,” Trade Minister Ömer Bolat said during an address in New York.
“This means that annual trade between the two countries will reach $50 billion within two years,” he added.
Bolat was speaking during a reception hosted by the Türkiye-U.S. Business Council (TAIK) of the Foreign Economic Relations Board (DEIK) as part of the 19th Türkiye Investment Conference.
The reception, held at the New York Public Library, was attended by Bolat, Industry and Technology Minister Mehmet Fatih Kacır, Governor of the Central Bank of the Republic of Türkiye (CBRT) Fatih Karahan, DEIK head Nail Olpak, and TAIK chair Murat Özyeğin, as well as representatives of the business communities from Türkiye and the U.S.
Speaking at the event, Bolat said that the U.S. is Türkiye’s third-largest trading partner in terms of exports and fourth-largest in terms of imports.
Recalling that President Recep Tayyip Erdoğan and U.S. President Donald Trump have set a target of increasing bilateral trade to $100 billion, Bolat said that the two countries are on the right path to achieving this goal in the medium to long term.
Bolat said that the trade performance between the two countries demonstrates the depth and resilience of their economic relationship, adding that cooperation is not limited to trade.
He noted that the two countries are continuing to deepen cooperation in the fields of energy, defense, and technology, and said that “promising” figures have also been achieved in terms of mutual investments.
Bolat said that investments do not merely bring capital to countries in both directions, but also create significant added value through technology transfer, innovation, employment, and production.
He said these investments create jobs both in Türkiye and the U.S., adding that investments between the two countries strengthen supply chains on both sides of the Atlantic.
Emphasizing that Türkiye-U.S. economic relations are built on mutual trust rooted in decades of alliance, Bolat said they are determined to further strengthen this foundation and are exploring new areas of partnership.
Özyeğin, who noted that next year will mark the 100th anniversary of diplomatic relations between Türkiye and the U.S., said that as with all longstanding partnerships, “the foundation of this strength lies in dialogue, trust, and the determination to continue building together.”
“Throughout this conference, our goal is precisely to do that: deepen our dialogue, establish new connections, and identify new opportunities for the two business communities to work together,” he said.
On the first day of the conference, a meeting titled “Türkiye’s Economic Outlook and Investment Opportunities” was held with the participation of Treasury and Finance Minister Mehmet Şimşek and CBRT Governor Karahan.
In addition, the Turkish industry minister met with American business leaders at a roundtable discussion on “Industry and High Technology.”
The events, organized to increase trade and investment between Türkiye and the U.S., are set to run over three days, from Sept. 21 to Sept. 23.
Türkiye’s economy remains strong and resilient despite difficult global conditions and regional conflict, Treasury and Finance Minister Mehmet Şimşek told U.S. investors Monday, highlighting low debt, rising reserves and reduced external vulnerabilities.
Şimşek and Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan attended a meeting on Türkiye’s economic outlook and investment opportunities during the Türkiye Investment Conference, organized by the Foreign Economic Relations Board (DEIK) Türkiye-U.S. Business Council in New York.
Şimşek said Türkiye’s low overall debt burden, fiscal policy space, declining external vulnerabilities, rising international reserves and the exit from the foreign exchange-protected Turkish lira deposit scheme, known as KKM, had strengthened the economy’s ability to withstand shocks.
“Our economy is resilient to shocks. Our low overall debt-to-GDP ratio, our fiscal flexibility, declining external vulnerabilities, rising international reserves, and the phase-out of the KKM have all contributed to our economy’s resilience,” the minister was cited as saying by Anadolu Agency (AA).
The meeting focused on the road map outlined in the government’s recently announced Medium-Term Program (MTP), Türkiye’s investment environment and opportunities across key sectors. Karahan also discussed monetary policy and the macroeconomic outlook.
Investment opportunities
Şimşek highlighted Türkiye’s manufacturing and services base, strategic location, infrastructure and skilled workforce as factors supporting its position as a reliable supplier.
“Türkiye is a large economy that is growing strongly compared with its peers,” he said.
He noted the government was accelerating green and digital transformation, industrial transformation and investments in productive infrastructure, while recently announced tax incentives were intended to strengthen the investment and export environment.
He identified defense, tourism, health tourism and digital services exports, including television series and mobile games, as areas offering significant opportunities.
The defense industry is also an important driver of the transformation of Türkiye’s manufacturing sector, Şimşek said.
The meeting also highlighted opportunities in advanced manufacturing, defense and aerospace, health care, logistics and transportation, digital technologies, green and digital transformation and access to regional markets.
Türkiye seeks high-tech investment
A separate industry and high-technology roundtable attended by Industry and Technology Minister Mehmet Fatih Kacır focused on Türkiye’s potential to become a global hub for high-technology production and innovation.
The discussions covered Türkiye’s advantages in strategic areas including semiconductors, mobility, green energy, advanced manufacturing, healthy living, digital technologies, communications and space, as well as opportunities to establish complementary investments across different stages of global value chains.
Investors were also briefed on the government’s investment incentive programs.
DEIK President Nail Olpak said cooperation between Türkiye and the United States in industry and high technology was important. He highlighted what he said were opportunities arising from the combination of Türkiye’s industrial and technology strategy with U.S. strengths in artificial intelligence, semiconductors and software.
He said predictability was among the business community’s main expectations as global uncertainty increases. “We attach importance to having a clear road map for the future,” Olpak said.
Türkiye-U.S. Business Council Chair Murat Özyeğin said Türkiye was maintaining its commitment to disinflation and its policy direction despite increasingly challenging geopolitical and economic conditions.
He said the Medium-Term Program and investment framework demonstrated continuity in the government’s economic program and its intention to improve productivity and competitiveness.
Attracting long-term foreign direct investment that brings technology transfers and skilled employment to Türkiye is among the business community’s priorities, Özyeğin said.
Turkish military pension fund Oyak is in talks with one of the world’s largest energy companies over a strategic partnership in fuel distributor Güzel Enerji, with the outcome expected to become clear by early next year, its top executive said Tuesday.
Oyak General Manager Murat Yalçıntaş did not name the potential partner, but the fund has previously said it was holding talks with Saudi Arabia’s state oil company Saudi Aramco over a possible stake in Türkiye’s fourth-largest fuel retailer Güzel Enerji.
Oyak’s head of energy business Uğur Doğan said in May that talks were under way for Aramco to become a shareholder in Güzel Enerji.
Yalçıntaş said Oyak wants to expand its energy activities beyond fuel distribution into production and refining as part of its 2030 strategy to become an international player in core sectors.
He said the partnership under discussion would be an important step in Oyak’s push to build a more multinational structure.
“We have strategic partnership talks with one of the world’s largest energy giants. We think the picture will become clear by the end of this year or early next year,” Yalçıntaş told reporters in Istanbul.
The 2030 strategy was announced in late February when Yalçıntaş said the company had identified infrastructure, energy, logistics, high technology and mining as priority sectors.
Under the strategy, Oyak aims to strengthen its balance sheet and enhance cash generation and capital efficiency while nearly doubling its asset value to $60 billion by the end of the decade.
On a planned refinery investment, Yalçıntaş said Oyak was considering both greenfield projects and opportunities involving existing refineries, either in Türkiye or abroad.
Oyak operates more than 189 companies across 30 countries in sectors including mining and metallurgy, cement, automotive, energy, chemicals, food, finance and construction.
The group’s consolidated revenue reached TL 418 billion ($8.56 billion) in the first half of 2026, while consolidated net profit rose 66% year-over-year to TL 83 billion, Yalçıntaş said.
Consolidated assets increased 31% from the same period of 2025 to TL 1.85 trillion.
In the mining and metals sector, liquid steel production reached nearly 4.67 million tons in the first half, up 19% year-over-year, while finished product output rose 19% and sales volumes increased 15%.
Oyak’s automotive operations also maintained a strong position, with Renault’s Turkish joint venture Mais selling 100,256 vehicles in the first eight months of the year for a 13.9% market share, Yalçıntaş said.
Tekfen investment to support portfolio expansion
Yalçıntaş said Oyak’s acquisition of a 42.8% stake in Tekfen Holding was one of its most important strategic moves in 2026.
He said Tekfen’s international experience in engineering, procurement and construction would complement Oyak’s existing industrial ecosystem and support its 2030 strategy.
The investment would also strengthen Oyak’s agricultural industrial operations through Tekfen’s fertilizer, crop protection, seeds and agricultural production businesses, he said.
Energy and agriculture remain strategic priorities
In energy, Oyak has completed the acquisition of the remaining shares in ISKEN and Arkas Deniz Taşımacılığı, giving it full ownership of both companies, Yalçıntaş said.
ISKEN accounted for about 1.7% of Türkiye’s total electricity generation between January and August, while Güzel Enerji’s consolidated revenue reached TL 112.3 billion in the first half.
Yalçıntaş said Oyak was also continuing investments in steel, including planned investments at its electrical steel facility in Romania.
He described agriculture and food as strategic sectors for Türkiye, citing Oyak’s Hektaş and Toros businesses as key components of its strategy to strengthen agricultural production and input supply.
More Oyak companies could go public
Yalçıntaş said more Oyak companies could be listed on the Borsa Istanbul Stock Exchange in the coming years.
He said the group had previously indicated that investors would see more publicly traded Oyak companies and had followed through on that commitment within six months, adding that preparations for further listings were continuing.
Oyak also plans to expand its infrastructure investments in Türkiye and abroad, including ports and logistics projects. Yalçıntaş said the group was assessing opportunities in Africa, particularly infrastructure projects linked to the production and transportation of the continent’s natural resources.
The group is also continuing to evaluate strategic partnerships in areas where it can create synergies, while considering exits from businesses that do not fit its portfolio strategy.
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