Celebrate the "symbolic strike" against Trump's tariff policy
Global Markets Anticipate Rally on Stock Exchanges Amid invalidation of Trump's Tariffs
Good news for markets has emerged as a U.S. federal court declares President Trump's global tariffs invalid, offering temporary respite for businesses and investors. Initial price surges have been reported in Asia, heralding a positive start to trading in Europe, despite the holiday.
The U.S. federal court ruling states that President Trump exceeded his authority in implementing tariffs justified by a national emergency. This decision comes at a crucial time, as traders are keeping a particularly close eye on the global trade war's impact on the markets. Tech giant Nvidia's solid quarterly results, with its stock rising nearly 5 percent in after-hours trading, have further bolstered the markets.
The German DAX index saw a 0.77 percent rise to 24,224.18 points, albeit not enough to set a new record. The record remains at the 24,326 points achieved the previous day, leaving the DAX up around 22 percent in 2025. Futures on U.S. indices have risen overnight, with indices in Tokyo and Seoul climbing by up to 1.8 percent.
However, the legal battle is far from over. The U.S. International Trade Court finds that President Trump does not have the authority to impose tariffs unilaterally, and the court's ruling has declared the measures invalid. The court has given the Trump administration 10 days to withdraw the tariff threats, but the administration has immediately appealed the ruling.
The positive response from the stock markets is viewed as a sigh of relief after weeks of market volatility resulting from the trade war. Stephen Innes of SPI Asset Management opines, "This ruling is more than a legal footnote. It marks a structural turning point in the narrative - from strongman decisions to an institutionalized framework."
For Charu Chanana, chief investment strategist at Saxo Markets, the ruling constitutes a symbolic blow against Trump's aggressive trade agenda, serving as a relief for the market but not an outright solution. The extent of the impact is demonstrated by Korea, where the central bank has cut interest rates and revised its economic outlook, while still operating within the confines of the previous tariff environment.
The victory of the court decision is likely to overshadow all other news, with a particular impact on export-oriented stocks, such as the automotive and technology sectors. No major corporate earnings are scheduled this week, but attention will shift to the revision of GDP in the U.S., as well as speeches by various Fed speakers in the afternoon. Retail and consumer data is due from Italy and Spain in Europe.
References: ntv.de, ses/DJ/dpa
- Fed
- USA
- Wall Street
- DAX
- Donald Trump
- The ruling by the U.S. federal court not only invalidates President Trump's tariffs but also challenges his authority in implementing them, prompting the Federal Reserve, a significant economic institution in the USA, to reassess its stance amid this shifting trade landscape.
- The positive impact of the court ruling reaches Wall Street, where investors are likely to redirect their focus and potentially invest more in sectors such as technology, given the surge in Nvidia's stock after its solid quarterly results.
- Concurrently in Germany, the DAX, a key stock market index, has observed a noticeable rise following the court decision, foreshadowing potential investments and growth opportunities in export-oriented industries like automotive and technology, regions most affected by the trade war and tariff invalidation.
