US Court Blocks Trump 10% Tariffs, Administration Appeals

A US federal court ruled that President Trump's broad tariffs imposed under emergency powers are illegal, as the Senate has not authorized such unilateral action, invalidating the universal 10% tariffs and reciprocal tariffs while leaving sector-specific tariffs like steel and aluminum intact. The ruling is seen as a legal setback but unlikely to drastically change the overall course of US trade policy, as the administration has already appealed and retains other legal mechanisms to impose tariffs. UK officials acknowledged the ruling as a domestic US matter but emphasized their ongoing efforts to implement a trade deal reducing tariffs on British cars, steel, and aluminum, which has yet to come into force and remains critical for UK exporters. Markets initially reacted positively with gains in US stocks and a stronger dollar, although some gains have since moderated amid uncertainty over future trade tensions and legal appeals. The ruling has also impacted currency markets, with the British pound weakening against the dollar, though medium-term support for the pound remains due to UK economic factors. Overall, the decision introduces more uncertainty but does not eliminate the possibility of tariffs being reinstated through other legal avenues, keeping trade tensions and market volatility on the horizon.