Court Blocks Trump Tariffs, Nvidia Surges, the "TACO Trade" 5/29/25

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Jim Cramer (0:59)

It's Jim Cramer here. You're listening to the opening bell of CNBC Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:06)

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Pre-markets rallying as a federal trade court blocks the president's reciprocal tariffs in a unanimous decision. Nvidia is powering ahead on earnings, but futures are off the highs as Q1 GDP consumption is revised lower from 1.8 down to 1.2. Our roadmap begins with that federal trade court striking down Trump's worldwide reciprocal tariffs and ordering the administration to stop collecting them.

David Faber (1:34)

Nvidia's earnings beat is sparking a global chip rally. CEO Jensen Huang speaking with Jim last night about the fallout from China restrictions and of course what's ahead for this AI chip giant. And Elon Musk is leaving his government work at doze certainly in terms of it being more of a full time gig saying his scheduled time has come to an end.

Carl Quintanilla (1:56)

Let's begin with this federal trade court blocking the sweeping tariffs announced by the president in early April. The three judge panel ruling he did not have the authority to impose them under a decades old emergency economic powers law. The decision voids tariffs on dozens of countries and the fentanyl related levies on Canada, Mexico and China. The court is giving the administration ten days to implement the ruling and the White House has already filed plans to appeal Jim Hassett and Navarro on the tape this morning saying in Navarro's words not much has changed.

Jim Cramer (2:28)

It is amazing to me how if you read this you would say you know what the judiciary is secondary and subordinate to the executive branch. And by the way Wall Street is following in the line. I'm reading seven different reports from Wall Street. All of them say listen nothing has changed. Everything has changed. I mean unless you feel that this is Andrew Jackson and we're back in the great the unfortunate Cherokee ruling where he says you know how many divisions does general does justice marshal have. I mean I want it to be that obviously that's a constitutional crisis David if this court means nothing. You know that the judiciary is not supported to the executive.

David Faber (3:07)

Well there have been a number of instances of course in very different policy areas where the administration has been stopped by the courts but it's unclear I think to a certain extent how much it's obeying or not and that continues to be a question. A broad question of course not one we deal with here in terms of our coverage as often.

Jim Cramer (3:24)

You know Stephen Miller's tweet about how it's a judicial coup.

David Faber (3:29)

Yeah, I mean it's not as though there haven't been any number of questions as to whether you could really say this is an economic emergency, right? Using the International Emergency Economic Powers Act, IEPA, to impose these tariffs and in fact it wasn't just in this court there are any number of other cases I believe that are pending as well based similarly on the concern or the opposition to the use of that particular act saying what's an emergency now that wasn't an emergency at different times. Now that said there are different tools and in fact the Trump Administration the first time used the, did not use this act but used different rights, different tools to certainly impose significant tariffs on China, for example, and we could go back down that road as we all know, section 122 for the immediate imposition of tariffs is up to 15 percent, that's just 150 days. You can do section 301 for the imposition of more durable tariffs, that's country by country. We've talked as well about, you know, what is it, 232, the national security thing.