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Tariff takedown, lawyering up and Musk's costly goodbye

 
Today's GLOBAL TRADE story

US trade court nullifies Trump's biggest tariffs

What happened
The federal U.S. Court of International Trade yesterday struck down President Donald Trump's sweeping tariffs against other countries. The bipartisan three-judge panel unanimously invalidated Trump's fentanyl-related and "Liberation Day" tariffs, and any other import taxes based on the International Emergency Economic Powers Act of 1977. His tariffs on steel, aluminum, cars and other specific industries, levied under a different law, are not affected by the ruling.

Who said what
The 1977 law "does not authorize the president to impose unbounded tariffs," the court said, and Trump's import taxes "exceed any authority granted" him by the law. The judges also agreed with the two sets of plaintiffs — a group of small businesses and 12 states — that trade deficits do not constitute an "unusual and extraordinary threat." No president had previously "sought to invoke" the emergency act "to impose tariffs on other nations," The New York Times said. The law "does not even mention tariffs."

"This ruling reaffirms that our laws matter, and that trade decisions can't be made on the president’s whim," said Oregon Attorney General Dan Rayfield, who led the states' lawsuit. The decision "blows a giant hole through Trump's strategy to use steep tariffs to wring concessions from trading partners," Reuters said. That "may be a very dandy plan," Senior Judge Jane Restani, a Ronald Reagan appointee, said in oral arguments, "but it has to meet the statute."

Wall Street cheered the decision, with the dollar strengthening and Asian markets and U.S. stock futures rising after it was handed down yesterday evening. The White House immediately filed a notice of appeal. "It is not for unelected judges to decide how to properly address a national emergency," spokesperson Kash Patel said in a statement.

What next?
The New York-based trade court gave the Trump administration 10 days to order a halt to the tariffs. The government may also "have to pay back duties it has already collected," Politico said. The ruling can be appealed to the U.S. Court of Appeals for the Federal Circuit — a specialized court that deals largely with patent and trademark law — and ultimately to the Supreme Court.

 
 
Today's COURTS story

Trump taps ex-personal lawyer for appeals court

What happened
President Donald Trump said yesterday he will nominate his former criminal defense attorney Emil Bove for a vacant seat on the Philadelphia-based U.S. 3rd District Court of Appeals. Bove, now a senior Trump Justice Department official, represented the president in his New York hush-money case and the two federal cases charging Trump with mishandling classified documents and working to overturn the 2020 election. 

Who said what
"Emil is smart, tough" and "will end the weaponization of justice," Trump said on social media. Bove has "been at the center" of some of the Trump Justice Department's "most scrutinized actions," The Associated Press said, including sacking senior FBI officials, ordering the "firings of a group of prosecutors involved in the Jan. 6 criminal cases" and moving "aggressively" to execute Trump's "agenda around immigration."

One of Trump's "closest and most truculent legal allies," Bove has "earned a reputation as an aggressive and often indelicate manager," Politico said, "most notably for his dismantling of the criminal case against New York City Mayor Eric Adams." That "unusual move" led to a "spate of resignations" of senior career prosecutors, The Wall Street Journal said, including the acting U.S. attorney in New York, who "accused Bove of brokering an improper quid pro quo to secure Adams' help with immigration enforcement."

What next?
Bove "could face a bruising confirmation fight" in the Senate, the Journal said. The 3rd Circuit covers New Jersey, Delaware and Pennsylvania, and New Jersey's two senators, Democrats Cory Booker and Andy Kim, called Bove's nomination "deeply troubling."

 
 
Today's DOGE Story

Elon Musk departs Trump administration

What happened
Elon Musk said last night that his time as a "special government employee" in the Trump administration had come "to an end." His exit, confirmed by the White House, followed a federal judge's ruling on Tuesday that 14 states could pursue their claim that Musk's appointment and his DOGE operation's data grabs were illegal. A group of Tesla shareholders also wrote to the company's board yesterday demanding his "full-time attention on Tesla" or replacement as CEO. 

Who said what
Musk had recently "pivoted to damage control," seeking to "claw back the credibility he torched during his toxic tenure in Washington," Axios said. But "that won't be easy: SpaceX and Tesla both saw their brand reputations crater over the past year."

Musk "struggled" in Washington and "accomplished far less than he hoped," The Associated Press said. He "dramatically reduced his target for cutting spending — from $2 trillion to $1 trillion to $150 billion" — and federal spending actually increased. The "cuts he wanted to enact were far more difficult than he expected and his lack of interest in learning more about the bureaucracy he considered toxic impeded his efforts," The New York Times said, citing people familiar with his efforts. 

What next?
Musk said on social media that despite his departure, the "DOGE mission will only strengthen over time as it becomes a way of life throughout the government." Some of his "most prominent deputies appear to be ensconced in their new government roles," the Times said. But it's "unclear how much power the group will maintain without its famous leader," USA Today said.

 
 

It's not all bad

Serious runners often buy new shoes every few months, and Sneaker Impact offers a way to reuse or recycle their old kicks. Shoes collected at drop-off points across the U.S. are shipped to Sneaker Impact's Miami warehouse, where they are sorted. Those in good condition are sent to shops in developing countries, reducing waste and "creating microbusiness opportunities," Sneaker Impact founder and CEO Moe Hachem told CBS News. Recycled shoes are crushed, and the foam and rubber are turned into flooring and mats.

 
 
Under the radar

A new sport, chessboxing, is slowly becoming a sensation by combining two pastimes that seem to be polar opposites. A chessboxing match generally "consists of 11 alternating rounds — six of chess and five of boxing" — that each last three minutes, said Chess.com. The winner is "determined by checkmate, resignation, knockout or disqualification by the referee." If a player does not win during the chess games, then whoever has more points throughout the boxing rounds becomes the victor.

Chessboxing's major events are "top-tier in terms of entertainment, lighting, professional hosts, live-streaming to multiple countries — all that kind of stuff that you would see in other kinds of sporting events," Matt Thomas, a world champion chessboxer, said to USA Today. The sport is a "beautiful yin-and-yang and it's multifaceted."

Online influencers are also fueling chessboxing's growth. Many "well-known YouTubers and other internet celebrities have tried to conquer professional boxing, much to the annoyance of purists and the delight of promoters who can market the bouts to younger, very online viewers," said Rolling Stone. On the other side, the "pro chess community has seen escalated drama around some of the world's top players, with match walkouts, accusations of corruption, huge lawsuits and outlandish theories about cheating."

Popular Twitch streamers and YouTubers bring viewers to chessboxing matches, even if they don't know how to box or play chess, Rolling Stone said. The "blend of strategic gameplay, physical violence, hyped color commentary and gonzo gimmicks struck a chord with people more accustomed to conventional esports streaming."

 
 
On this day

May 29, 1953

New Zealander Edmund Hillary and Sherpa Tenzing Norgay became the first climbers verified to reach the summit of Mount Everest. Part of a British expedition to the mountain, the pair reached the summit after numerous other mountaineers failed. Today, an estimated 700 people attempt to climb Everest every year.

 
 
TODAY'S newspaperS

Is Elon Musk "falling back to Earth?" the Los Angeles Times says on Thursday's front page, adding that "it's a challenging time for the world's richest man" with "his projects unraveling" across the board. "Musk tried to sabotage Altman's UAE deal," The Wall Street Journal says. "As tariffs rise, so do schemes to avoid them," The New York Times says. "Ruling freezes Trump's tariffs," says The Washington Post. "States' care on brink of collapse," especially in the South, USA Today says. "Trump gives pardon to Todd and Julie Chrisley," reality TV stars convicted of evading millions in taxes, The Atlanta Journal-Constitution says.

► See the newspaper front pages

 
 
Tall tale

Beast of burden

A Tasmanian woman is suing the Everyday IGA supermarket chain after one of its stores refused entry to Violet, her "therapy" alpaca. Abbygail-Nigella Borst said the cloven-hoofed animal helps keep her calm in public and alerts her when she's about to have a panic attack. The supermarket said alpacas are livestock and Violet had to stay out due to food hygiene concerns. The case is now going to court and could set a precedent for "nontraditional" assistance animals, said The Times of London.

 
 

Morning Report was written and edited by Theara Coleman, Nadia Croes, Catherine Garcia, Scott Hocker, Anya Jaremko-Greenwold, Justin Klawans, Devika Rao, Rafi Schwartz and Peter Weber, with illustrations by Stephen Kelly and Julia Wytrazek.

Image credits, from top: Chip Somodevilla / Getty Images; Dave Sanders / The New York Times / Bloomberg via Getty Images; Jeff Bottari / Zuffa LLC; Oli Scarff / AFP via Getty Images