US Stocks Rally After Court Overturns Trump’s Tariff Measures

US stock markets received a boost on Thursday after a US court struck down tariff measures introduced by President Donald Trump earlier this month, ruling that they exceeded his authority. The decision invalidated tariffs imposed under a declared economic emergency, which had allowed restrictions on many of the United States’ trading partners. The court deemed these measures unlawful, citing overreach by the administration.

The Trump administration now faces challenges in sustaining its trade policies, which heavily rely on tariffs and other restrictions. Analysts suggest the White House has limited options to circumvent the ruling, though they expect the impact to be temporary, with minimal long-term changes to current trade strategies.

Market reactions were mixed but largely positive. The S&P 500 climbed to 5,907 points, gaining approximately 18 points or 0.4%. The tech-heavy Nasdaq surged to 19,223, adding about 121 points or 0.7%. However, the Dow Jones Industrial Average slipped to 42,114 points, shedding roughly 35 points or less than 0.1%, though analysts anticipate a potential recovery as US trading progresses.

The court’s ruling specifically nullified tariffs announced in early April, which imposed duties on numerous US trading partners. The decision stated that President Trump had “exceeded his authority” by invoking emergency powers to apply tariffs globally. This ruling is part of a broader wave of legal challenges against the administration’s trade policies, with multiple lawsuits still pending.