US court ruled this week that president has overstepped his authority by invoking an emergency law to justify tariff policy.
Fast reading
- Spreads tightened and equities edged higher following the ruling, while the US dollar strengthened.
- The yield on the 30-year US Treasury – which hit 5% last week – dipped this week as traders moderated rate cut expectations.
Investors have been absorbing a surprise US court ruling blocking the majority of President Donald Trump’s sweeping tariffs programme.
The three-judge US Court of International Trade ruled on Wednesday that Trump wrongfully invoked an emergency law to justify the policy.
The order largely applies to Trump’s 2 April ‘Liberation Day’ package, while tariffs imposed under different powers – such as the levies on steel, aluminium and automobiles – are unaffected. The White House has appealed against the decision.
Hong Kong’s Hang Seng Index closed up 1.35% on Thursday, while Japan’s Nikkei 225 rose 1.88%.
The S&P 500 edged up 0.4% on Thursday following another set of blockbuster results this week from US computer chip giant Nvidia. Meanwhile, the US dollar – which has fallen more than 8% against the euro since the start of the year – strengthened; and the price of ‘safe haven’ gold dropped.
You can now read the full whitepaper at the link below
