Markets cheer the overturning of the Tycoon’s tariffs

This afternoon, the highest American court declared the tariffs imposed by the Trump administration illegal, ruling that the president did not have the authority to impose large-scale duties without Congressional approval.

The ruling, passed with six votes in favor and three against, mainly concerns the use of the International Emergency Economic Powers Act of 1977 as the legal basis for the former president’s tariff policy. According to the justices, that law does not authorize the imposition of tariffs on a broad scale, a power reserved for the federal legislature.

The market reaction was immediate and positive: European stock exchanges accelerated the gains already recorded this morning, with Frankfurt up about +0.80%, Paris at +1.29%, London +0.75%, and Milan jumping more than +1.4% in the minutes immediately following the news.

Wall Street also opened in positive territory, with the Dow Jones rising about +0.33%, the Nasdaq gaining +0.57%, and the S&P 500 up +0.44%, reflecting a sense of relief among investors after weeks of tension linked to U.S. trade policies.

Analysts and market operators emphasize that today’s decision not only removes a legal uncertainty that had weighed on markets, but could also reduce costs for companies heavily exposed to imports, improving margin prospects and global supply chains.

Andrea Pelucchi