US Court Blocks Trump Tariffs, Markets React Globally

A U.S. trade court ruled that former President Donald Trump overstepped his authority in imposing certain sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), blocking most of these tariffs and ordering the administration to halt them within 10 days. This decision has created significant uncertainty among businesses and markets, as the Trump administration immediately filed an appeal and may seek alternative legal avenues to impose tariffs, prolonging the uncertainty. The ruling led to a mixed market reaction, with stock markets around the world surging on hopes of reduced tariff-related risks, while the U.S. dollar experienced volatility due to concerns over economic slowdown and inflation. Shipping and freight markets are also facing volatility, with expectations of increased demand as shippers rush to import before any potential reinstatement of tariffs. Analysts warn that the appeals process could extend for months, possibly ending at the Supreme Court, meaning uncertainty and market volatility are likely to persist. Overall, while the court ruling temporarily curtails the tariff agenda, the ongoing legal battles and alternative tariff strategies mean consistent and predictable trade policy remains elusive.