President Trump’s sweeping tariffs hit a roadblock at the Court of International Trade.

The WSJ’s James Fanelli and Gavin Bade report that the federal trade court ruled Trump didn’t have the authority to impose tariffs on virtually every nation, voiding the levies that have sparked a global trade war. Lawyers for the Trump administration notified the court they will appeal.

The court’s decision blocked one of the Trump administration’s most audacious assertions of executive power, under the International Emergency Economic Powers Act of 1977.

Trump has used IEEPA to underpin most of his second-term tariffs—from duties on Canada, Mexico and China imposed over fentanyl smuggling to the far-reaching reciprocal tariffs levied in early April on virtually every U.S. trading partner. Trump later paused the reciprocal tariffs for 90 days to allow for negotiations.

Wednesday’s ruling said it would be unconstitutional for Congress to delegate “unbounded tariff power” to the president. The panel also said the U.S. trade deficit didn’t fit the law’s definition of an unusual and extraordinary threat. 

The order blows a hole in global trade talks, already underway with more than a dozen nations, which began after the reciprocal tariffs were imposed. It also throws into question recent agreements with the United Kingdom and China reached after the reciprocal tariffs were imposed.

• Prime Minister Mark Carney said Canadian and U.S. officials are negotiating a new bilateral economic-and-security deal. (WSJ)
• The European Union is talking to U.S. officials about cooperating on key sectors including aviation and semiconductors as it works to secure a trade deal. (WSJ)

Macy’s is raising prices, renegotiating vendor agreements and shifting its inventory sourcing to ease the brunt of global tariffs.

The WSJ’s Dean Seal reports the department-store chain cut its full-year profit outlook to account for the tariff war and some moderation in consumer spending. Macy’s also cited a more competitive and promotion-heavy retail landscape for the reduced outlook. Chief Executive Tony Spring said the impact of tariffs on demand is hard to read so far with stronger-than-expected sales in the spring quarter.

Macy’s, like other retailers, is trying to figure out how to offset tariff pressures with higher prices at a time when consumers are tightly watching their budgets. As of early February, Macy’s sourced about a fifth of its products from China, executives said. The company has been working to lower the exposure of its private-label brands to China and diversify the countries it relies on for imports, Spring said.

Factories face a labor crunch as the Trump administration strips humanitarian protections from immigrant workers.

The WSJ’s Ruth Simon writes that 1.8 million people risk losing work authorizations after the Supreme Court allowed the administration to strip deportation protections for 350,000 Venezuelans in the U.S. Further rollbacks could leave a hole in production lines at factories that rely on immigrants to fill positions in a tight labor market.

Trump officials are seeking to reverse what they see as too widespread use of humanitarian programs to protect immigrants during the Biden administration.

The policy worries employers like Mills Manufacturing, in South Carolina, one of two companies qualified to make the main personnel parachutes for the U.S. military. Mills employs U.S.-born and foreign-born workers to sew and cut for 10-hour shifts. Company officials say that if they lose immigrant workers they wouldn’t be able to fulfill all of their government orders on time.

Federal Reserve officials signaled concern that large tariff hikes would push up prices and could stoke higher inflation. (WSJ)

The Supreme Court cleared a major obstacle for a giant copper project in Arizona being developed by Rio Tinto and BHP Group. (WSJ)

Developers are preparing to move forward with two left-for-dead natural-gas pipeline projects in New York. (WSJ)

Jeep-parent Stellantis named its North American head Antonio Filosa as its next CEO. (WSJ)

Shein is working towards a Hong Kong listing after the fast-fashion retailer's proposed IPO in London failed to secure approval from Chinese regulators. (Reuters)

NATO governments are warning of increased threat to western logistics from Russian cyber-attacks. (The Loadstar)

Heathrow’s CEO was uncontactable while the airport was shut down due to a massive power cut because he was asleep with his phone on silent. (Financial Times)

A startup says it can cut fuel use on containerships by 5% by retrofitting aerodynamic “noses” on bows to reduce wind resistance. (TradeWinds)

A 71-year-old man was killed trying to stop his tractor-trailer from rolling backwards at a Sherwin-Williams plant. (KDKA News)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.