US Court blocks Trump’s global tariffs, sparks market rally
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In a major trade policy twist, the U.S. Court of International Trade ruled against President Trump's universal tariffs, declaring them illegal under the 1977 International Emergency Economic Powers Act (IEEPA). The court found that the IEEPA does not grant the president unlimited authority to impose global tariffs, a power reserved for Congress.
The ruling, issued on Liberation Day by a panel of three judges, responded to two separate legal challenges. The decision immediately triggered a rally on Wall Street, with futures and the dollar surging.
The White House reacted sharply. Deputy Chief of Staff Stephen Miller called it a "judicial coup," while a spokesperson stated that unelected judges should not dictate national emergency responses. The Trump administration plans to appeal, possibly escalating the case to the Supreme Court.
The decision is likely to impact ongoing trade negotiations with China and the EU. Recently announced tariffs had been delayed by 90 days to allow talks, but this legal blow may affect partners' willingness to negotiate.
European markets are poised to open sharply higher. Futures on the FTSE MIB, DAX, and CAC 40 are up about 1%. On the forex market, the dollar is strengthening against the euro, pushing the exchange rate to 1.1269 (-0.19%).
The ruling, issued on Liberation Day by a panel of three judges, responded to two separate legal challenges. The decision immediately triggered a rally on Wall Street, with futures and the dollar surging.
The White House reacted sharply. Deputy Chief of Staff Stephen Miller called it a "judicial coup," while a spokesperson stated that unelected judges should not dictate national emergency responses. The Trump administration plans to appeal, possibly escalating the case to the Supreme Court.
The decision is likely to impact ongoing trade negotiations with China and the EU. Recently announced tariffs had been delayed by 90 days to allow talks, but this legal blow may affect partners' willingness to negotiate.
European markets are poised to open sharply higher. Futures on the FTSE MIB, DAX, and CAC 40 are up about 1%. On the forex market, the dollar is strengthening against the euro, pushing the exchange rate to 1.1269 (-0.19%).