Key Highlights:
US court says Trump’s new tariffs go beyond his legal powers.
Tariffs would have added 10% or more on imports from countries like China.
Stock market futures jumped after the decision.
The US dollar also gained strength.
Trump administration plans to appeal the court’s ruling.
Court Stops Trump’s New Tariffs
A US federal court has stopped President Donald Trump’s “Liberation Day” tariffs from going into effect. The court said Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The court also ruled that only Congress has the power to set tariffs, not the President.
These tariffs would have added at least 10% to import costs on products from countries like China, raising prices for many businesses and consumers in the US.
Stock Futures and Dollar Jump on Court Ruling
The court’s decision led to a strong reaction in financial markets. Investors welcomed the news, seeing it as a temporary relief from rising costs and inflation.
Here’s how the markets reacted:
S&P 500 E-mini futures rose by 1.6%, or 95 points.
Dow Jones Futures increased by 500 points.
Nasdaq Futures gained 430 points.
The US dollar strengthened by 0.8% against the Japanese yen (now at 145.85 yen) and the Swiss franc (now at 0.8339 CHF).
This rally suggests that businesses and investors believe the blocked tariffs could help control inflation and improve profit margins — at least for now.
Analysts Say Rally May Be Short-Lived
While markets celebrated the decision, experts warn the situation is not over. The Trump administration has already appealed the court’s ruling. Analysts say the current market rally might be just a short-term reaction, not a long-term recovery.
Why This Matters
Tariffs increase the cost of imported goods. If the tariffs had gone ahead, many products — from electronics to industrial materials — could have become more expensive in the US. That might have pushed inflation even higher.Blocking the tariffs — even temporarily — helps reduce that pressure, which is why markets responded positively.
Tariff Refunds May Be Coming – But It’s Complicated
A recent court ruling has struck down key tariffs imposed under the Trump administration — including the 10% global tariff and higher duties on goods from China, Canada, and Mexico. This decision means that companies who paid these tariffs might now be eligible for refunds. Law professor Ilya Somin, who was part of the legal challenge, said that businesses forced to pay these tariffs can now request their money back.
How to Get the Refund – And What Could Delay It
However, refunds won’t happen automatically. Importers need to file claims with U.S. Customs and Border Protection (CBP), using methods like Post Summary Corrections or formal protests. These filings have deadlines and can take time due to slow-moving bureaucracy. The ruling affects tariffs imposed using emergency powers under IEEPA, including those justified by drug trafficking and trade deficits. An estimated $10 billion in duties could be refunded, depending on what was paid before the court’s decision. But the government has already appealed the ruling, and if a court grants a stay, the refunds might be delayed or denied until the appeal is resolved.
Conclusion
The US Court’s decision to block Trump’s “Liberation Day” tariffs brought short-term relief to markets. Stocks went up, and the dollar gained strength. However, with an appeal in progress, uncertainty remains. Investors will be watching closely as the case continues.
Update
China Welcomes U.S. Court Decision Against Trump Tariffs
China has welcomed a recent U.S. court ruling that canceled the tariffs imposed during the Trump administration. A spokesperson from China’s Commerce Ministry, He Yongqian, said that trade wars do not benefit anyone and urged the U.S. to remove these tariffs completely. She mentioned that these tariffs have hurt global trade and American consumers and described them as misguided and one-sided.He Yongqian also highlighted opposition within the U.S. against these tariffs. Additionally, she called on the U.S. to lift export restrictions on chip-related products, saying these limits are unfair and violate a recent trade agreement between the two countries.
White House Adviser Confident About Tariff Appeal and Trade Deals
White House Adviser Kevin Hassett said he is confident that the U.S. will win the appeal against the recent tariff ruling. Speaking in an interview with Fox Business Network, Hassett assured that the ruling will not impact any current trade deals. He added that more trade agreements are expected to be finalized in the coming weeks, and that three of them are already nearly complete.
Update
Trump’s Tariffs Temporarily Back in Effect, Markets React Cautiously
An appeals court in Washington has temporarily brought back President Donald Trump’s tariffs while it reviews the government’s appeal. This comes just a day after a trade court ruled that Trump had gone beyond his powers, saying only Congress has the authority to impose such tariffs. The initial decision had sparked a market rally, but the appeals court’s move to keep the tariffs in place led to a different reaction. On Friday, Asian stock markets edged lower, and both the U.S. dollar and Treasury yields weakened as investors processed the mixed legal signals.
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