29.05.25 - US court stops tariffs

The US Court of International Trade has blocked the implementation of President Donald Trump’s so-called “Liberation Day” tariffs. The court ruled that, under the US Constitution, only Congress has the authority to regulate trade with foreign nations. The president’s emergency powers to protect the US economy do not override this constitutional mandate. By imposing blanket tariffs on imports from countries with trade surpluses against the US, Trump was found to have overstepped his legal authority.

The Trump administration immediately appealed the ruling within minutes of its release.

Markets: Global markets reacted positively. The US dollar gained, gold remained flat, and interest rates moved higher, with the 10-year Treasury yield rising above 4.52%.

My view: Markets remain highly news-driven, and the risk-on reaction and relief is not unusual. With the tariff story now in the hands of lawyers, market swings are likely to continue, depending on legal outcomes.
Trump's ambitious strategy to fund tax cuts through tariff revenues may be in serious jeopardy. As a result, US debt could soon return to the spotlight, a potential headwind for markets and overall risk sentiment. Therefore, this latest rebound could prove short-lived.

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