A recent court order marked a significant setback for President Trump’s economic agenda as the majority of his tariffs were declared illegal. This decision exposes the tensions that exist between regulatory authority and executive power in trade matters. As Trump’s tariffs are effectively blocked, market reactions will inevitably unfold, showcasing a blend of optimism and caution among investors. The so-called ‘TACO’ trade, where investors anticipate market rebounds following tariff threats, could further navigate this tricky landscape in the coming weeks. Investors must prepare for changing tides in U.S. trade policy.