Stock markets surged Thursday after a major legal setback for President Trump’s tariff plans.
The Court of International Trade blocked some of his harshest new tariffs on Wednesday. Global markets responded immediately.
The S&P 500 futures jumped 1.5%. Stocks soared in Europe and Asia. France, Germany, Hong Kong, Japan, and South Korea all saw gains.
Nvidia stock shot up more than 6%. The dollar climbed. Treasury yields rose too — with the 30-year note jumping back over 5%.
Analysts at Panmure Liberum said the ruling reduced long-term uncertainty. “Extreme tariffs are less likely,” they noted. But they warned it would still create short-term confusion for businesses.
Trump used the 1977 International Emergency Economic Powers Act to justify the tariffs. The Court gave him 10 days to end them. He quickly announced plans to appeal.
The ruling doesn’t touch earlier tariffs on steel, aluminum, and cars. Nor does it block threatened levies on drugs, chips, and other key imports.
The panel of three judges included two Republican appointees — one of them picked by Trump himself. They pointed out other legal options Trump could still use to impose tariffs.
“This is a roadblock, not a dead end,” Barron’s concluded. “Tariffs are still very much on the table.”