Global stock markets surged and the dollar strengthened after a US court blocked President Trump's extensive tariffs, creating legal uncertainty over his trade strategy. The Court of International Trade ruled Trump overstepped his authority, leading to gains in European markets and significant rises in Asia, particularly Japan's Nikkei. The White House plans to appeal the decision, but analysts suggest it disrupts Trump's hardline trade approach and may embolden other countries to delay negotiations. Despite potential setbacks, markets reacted positively, indicating diminished fears of extreme tariff implementations.
Despite the uncertainty, markets took the ruling as a sign that the most extreme tariff measures may not materialise, leading to a positive response from investors.
This throws the entire strategy into disarray, said Paul Ashworth, chief North America economist at Capital Economics, highlighting the potential for stalled negotiations.
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