In Greek theater, a deus ex machina arrives when a protagonist is hopelessly trapped — and a golden chariot descends from the heavens to rescue them from a conflict they cannot escape on their own. That is precisely what the Supreme Court has delivered to Donald Trump on trade. With his IEEPA tariff authority struck down as an illegal tax on American businesses and consumers, Trump has been handed an exit ramp from a trade war that was failing on nearly every front: alienating allies, stoking inflation, revolting bond markets, and uniting the American business community against him in rare collective opposition. The question now is whether Trump will climb into the chariot — or stand in the street and argue with the driver.
The ruling has set three consequential developments in motion simultaneously, each of which reshapes the economic outlook for the better.
