Global Markets Surge as U.S. Court Blocks Trump Tariffs
Global stock markets climbed sharply after a U.S. court ruled that Donald Trump’s recently introduced tariffs are illegal, casting uncertainty over the former president’s aggressive trade strategy.
The U.S. Court of International Trade ruled on Wednesday that Trump lacked the authority to implement the so-called “liberation day” tariffs imposed last month. In response, the Trump administration immediately filed an appeal, with a White House spokesperson insisting that “unelected judges” should not dictate responses to national emergencies.
The court gave Trump 10 days to withdraw most of the tariffs, a decision that sparked optimism in financial markets.
Asian markets reacted strongly, with Japan’s export-driven Nikkei 225 jumping 1.9%, Hong Kong’s Hang Seng rising 0.9%, and South Korea’s Kospi also gaining 1.9%. In the U.S., futures pointed to a positive open, with S&P 500 futures up 1.5% and Nasdaq futures climbing 1.9%.
European markets followed suit. Germany’s DAX rose 0.8%, while the Stoxx Europe 600 index added 0.5%. The ruling could strengthen the EU’s hand as it seeks to avoid a planned 50% tariff hike set for July.
In the UK, stocks rose at the open but later gave up gains. Britain was the first country to strike a trade deal with the U.S. under Trump’s tariff regime.
Last month, Trump sparked fears of a global trade war by imposing tariffs on nearly all U.S. imports and giving countries 90 days to renegotiate terms, triggering urgent talks worldwide.
While the court blocked the 10% blanket tariffs affecting all trading partners, it upheld Trump’s 25% duties on specific sectors, including steel and automotive imports.
