Trump's customs policy suffers a "significant setback"
A U.S. federal court has invalidated President Trump's global tariffs, offering a rare piece of good news for the recently volatile markets. Initial price surges have been recorded in Asia, and European stock markets are expected to open with gains, despite the holiday.
Tech giant Nvidia added to the positive sentiment, reporting better-than-expected quarterly results, causing its stock to jump nearly 5 percent in after-hours trading. The DAX rose 0.77 percent to 24,224.18 points in the opening minutes, but fell short of reaching its record high.
U.S. federal courts declared President Trump's authority to impose tariffs questionable. The court ruled that the measures were invalid. The Trump administration has 10 days to withdraw the tariff threats, though it has already appealed the ruling.
Investors are interpreting this development as a relief after weeks of volatility due to the trade war, according to Stephen Innes of SPI Asset Management. He acknowledges the ruling's significance, stating it represents a structural turning point in the narrative, moving away from unilateral decisions to an institutionalized framework.
Charu Chanana, chief investment strategist at Saxo Markets, sees this ruling as a symbolic blow against Trump's aggressive trade agenda. It removes a constant burden for the market, but the final word on tariffs has not yet been spoken.
Asian indices surged overnight, with futures on U.S. indices also experiencing growth. Tokyo and Seoul stock markets rose up to 1.8 percent, while the German benchmark index is up around 22 percent in 2025. No major corporate earnings are scheduled, with attention turning to GDP revisions in the U.S. and retail and consumer data in Europe.
The tariff situation remains uncertain, with no clear indication of how it might progress after the court's ruling. Recent developments in U.S.-China trade negotiations involve both countries lowering tariffs by a certain percentage while retaining a 10% tariff. EU tariffs on U.S.-origin goods have also been threatened or implemented, with specific deadlines for implementation or removal.
Source: ntv.de, ses/DJ/dpa* Economy* Trump’s Tariffs* Stock Markets* Fed* USA* Wall Street* DAX* Donald Trump
- The Commission is being asked to submit a proposal for a directive on the protection of workers from the risks arising from the use of electronic communications networks, which could potentially finance investments in technology and business infrastructure, influencing the general-news discourse on politics.
- Despite the holiday, European stock markets are expected to open with gains, a positive development related to the ruling that invalidated President Trump's global tariffs, a move that may ease tensions in the trade relationship between the USA and certain nations, such as the EU, which could lead to more stable business, finance, and technology sectors.
- The German benchmark index, the DAX, has already risen around 22 percent in 2025, possibly attributed to various positive economic indicators, including the recent court ruling on Trump's tariffs and better-than-expected quarterly results from tech giants like Nvidia, pointing towards a more optimistic outlook for Wall Street and the global business climate.
