A federal appeals court has temporarily blocked a decision by the U.S. Court of International Trade that barred most of the Trump administration’s tariffs on global trading partners. The stay leaves in place the challenged tariffs while the government fights the original ruling. This development has renewed doubts about U.S. trade policy and triggered market moves around the world.
White House Vows to Defend Tariff Measures
The stay gives the administration more time to argue that the president has the power to impose broad import taxes. Officials say they could also reapply similar tariffs under other legal authorities, though that process might take months. Peter Navarro, the president’s top trade adviser, said Thursday, “The Trump tariff agenda remains valid, good, healthy and will be implemented to protect you, save your jobs and your factories, and stop the transfer of foreign wealth to foreign hands.”
Initial Ruling and Legal Debate
In early April, President Trump used the International Emergency Economic Powers Act (IEEPA) to impose so-called reciprocal tariffs. On Wednesday, the trade court found that IEEPA did not grant him the authority to levy such wide-ranging duties. White House Press Secretary Carolyn Levitt called the trade court’s decision an “activist judge” overreach and urged the Supreme Court to resolve the dispute.
Stocks Pare Gains Amid Risk Aversion
U.S. equities initially ticked higher on the appeals court stay and upbeat earnings from Nvidia. By Thursday’s close, however, major indexes trimmed their early gains. In overnight trading, futures pointed lower: as of 4 a.m. CEST, Dow futures were down 0.08%, while S&P 500 and Nasdaq 100 futures each fell 0.26%.
Global Markets React
European futures also signaled a weaker open, with the Eurozone Stoxx 50 off 0.19% and Germany’s DAX down 0.15%. German shares slipped for a second day after setting a record earlier in the week. Asian markets followed suit on Friday: Hong Kong’s Hang Seng dropped 1.4%, Japan’s Nikkei 225 fell 1.39%, and South Korea’s Kospi slid 0.61%. Australia’s ASX 200 was flat as of 3:10 a.m. CEST.
Dollar Weakens; Safe Havens Rally
The appeals court stay dented the dollar and U.S. Treasury yields. Yields initially spiked to 4.50% before retreating to 4.42% as prices fell back. Meanwhile, gold climbed, and the euro, Swiss franc, and yen all gained. The euro surged from an intraday low of $1.1210 to $1.1353 against the dollar by 3:11 a.m. CEST on Friday. Gold futures also rose, jumping from $3,269 to $3,321 per ounce.
