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Trump tariff court setback stirs relief and uncertainty

Trump tariff court setback stirs relief and uncertainty

The Advertiser29-05-2025

A US trade court ruling that blocked most of President Donald Trump's tariffs and found he had overstepped his authority has triggered some relief on financial markets, while adding to the uncertainties weighing on the global economy.
Among the United States' big trading partners, in the throes of negotiation with the Trump administration, Germany said it could not comment, as did the European Commission.
"We ask for your understanding that we cannot comment on the legal proceedings in the US, as they are still ongoing," a spokesperson for Germany's economy ministry said on Thursday.
"We continue to hope that a mutually beneficial solution can be reached in the negotiations between the EU Commission and the US government."
Winners on financial markets included chipmakers, banks, luxury stocks and the auto industry, all hit hard by tariff-led disruptions.
The US dollar rallied 0.2 per cent against the yen and 0.3 per cent against the Swiss franc as currencies and assets that have benefited from the tariff-induced market turmoil fell.
Wall Street stock index futures rose by more than 1.5 per cent.
The trade court ruling on Wednesday dealt a blow to Trump's central policy of using tariffs to wring concessions from trading partners.
His administration immediately said it will appeal and analysts said investors will remain cautious as the White House explores its legal avenues.
Following a market revolt after Trump's major tariff announcement on April 2, the US president paused most import duties for 90 days and said he would hammer out bilateral deals with trade partners.
But apart from a pact with Britain earlier in May, agreements remain elusive and the court's stay on the tariffs may dissuade countries like Japan from rushing into deals, analysts said.
Another pause in Trump's stop-start trade policy could be helpful to opponents of his tariffs and to traders who relish volatility.
"Assuming that an appeal does not succeed in the next few days, the main win is time to prepare, and also a cap on the breadth of tariffs - which can't exceed 15 per cent for the time being," said George Lagarias, chief economist at international advisers Forvis Mazars.
Trump's trade war has shaken makers of everything from luxury handbags and trainers to household appliances and cars as the price of raw materials has risen, supply chains have been disrupted and company strategies redrafted.
Drinks company Diageo and automakers General Motors and Ford are among those who have abandoned forecasts for the year ahead.
Non-US companies including Honda, Campari and pharmaceutical companies Roche and Novartis have said they are considering moving operations or expanding their US presence to mitigate the impact of tariffs.
As markets assessed the latest twist in the trade upheaval, European export-sensitive sectors such as autos and luxury stocks were among leading gainers on Thursday.
Overall sentiment was also lifted by strong results late on Wednesday from AI bellwether Nvidia.
Spot gold declined for a fourth straight day, while US Treasury yields rose. Bond yields move inversely with prices.
But the gains in shares may be short-lived, analysts said, with those who relish risk making the most of them.
"I think we are in a period of higher volatility - we will get some more spikes on the way, I think. But volatility is the friend of the active investors," Kevin Barker, global head of active equities, UBS Asset Management, told a media briefing.
A US trade court ruling that blocked most of President Donald Trump's tariffs and found he had overstepped his authority has triggered some relief on financial markets, while adding to the uncertainties weighing on the global economy.
Among the United States' big trading partners, in the throes of negotiation with the Trump administration, Germany said it could not comment, as did the European Commission.
"We ask for your understanding that we cannot comment on the legal proceedings in the US, as they are still ongoing," a spokesperson for Germany's economy ministry said on Thursday.
"We continue to hope that a mutually beneficial solution can be reached in the negotiations between the EU Commission and the US government."
Winners on financial markets included chipmakers, banks, luxury stocks and the auto industry, all hit hard by tariff-led disruptions.
The US dollar rallied 0.2 per cent against the yen and 0.3 per cent against the Swiss franc as currencies and assets that have benefited from the tariff-induced market turmoil fell.
Wall Street stock index futures rose by more than 1.5 per cent.
The trade court ruling on Wednesday dealt a blow to Trump's central policy of using tariffs to wring concessions from trading partners.
His administration immediately said it will appeal and analysts said investors will remain cautious as the White House explores its legal avenues.
Following a market revolt after Trump's major tariff announcement on April 2, the US president paused most import duties for 90 days and said he would hammer out bilateral deals with trade partners.
But apart from a pact with Britain earlier in May, agreements remain elusive and the court's stay on the tariffs may dissuade countries like Japan from rushing into deals, analysts said.
Another pause in Trump's stop-start trade policy could be helpful to opponents of his tariffs and to traders who relish volatility.
"Assuming that an appeal does not succeed in the next few days, the main win is time to prepare, and also a cap on the breadth of tariffs - which can't exceed 15 per cent for the time being," said George Lagarias, chief economist at international advisers Forvis Mazars.
Trump's trade war has shaken makers of everything from luxury handbags and trainers to household appliances and cars as the price of raw materials has risen, supply chains have been disrupted and company strategies redrafted.
Drinks company Diageo and automakers General Motors and Ford are among those who have abandoned forecasts for the year ahead.
Non-US companies including Honda, Campari and pharmaceutical companies Roche and Novartis have said they are considering moving operations or expanding their US presence to mitigate the impact of tariffs.
As markets assessed the latest twist in the trade upheaval, European export-sensitive sectors such as autos and luxury stocks were among leading gainers on Thursday.
Overall sentiment was also lifted by strong results late on Wednesday from AI bellwether Nvidia.
Spot gold declined for a fourth straight day, while US Treasury yields rose. Bond yields move inversely with prices.
But the gains in shares may be short-lived, analysts said, with those who relish risk making the most of them.
"I think we are in a period of higher volatility - we will get some more spikes on the way, I think. But volatility is the friend of the active investors," Kevin Barker, global head of active equities, UBS Asset Management, told a media briefing.
A US trade court ruling that blocked most of President Donald Trump's tariffs and found he had overstepped his authority has triggered some relief on financial markets, while adding to the uncertainties weighing on the global economy.
Among the United States' big trading partners, in the throes of negotiation with the Trump administration, Germany said it could not comment, as did the European Commission.
"We ask for your understanding that we cannot comment on the legal proceedings in the US, as they are still ongoing," a spokesperson for Germany's economy ministry said on Thursday.
"We continue to hope that a mutually beneficial solution can be reached in the negotiations between the EU Commission and the US government."
Winners on financial markets included chipmakers, banks, luxury stocks and the auto industry, all hit hard by tariff-led disruptions.
The US dollar rallied 0.2 per cent against the yen and 0.3 per cent against the Swiss franc as currencies and assets that have benefited from the tariff-induced market turmoil fell.
Wall Street stock index futures rose by more than 1.5 per cent.
The trade court ruling on Wednesday dealt a blow to Trump's central policy of using tariffs to wring concessions from trading partners.
His administration immediately said it will appeal and analysts said investors will remain cautious as the White House explores its legal avenues.
Following a market revolt after Trump's major tariff announcement on April 2, the US president paused most import duties for 90 days and said he would hammer out bilateral deals with trade partners.
But apart from a pact with Britain earlier in May, agreements remain elusive and the court's stay on the tariffs may dissuade countries like Japan from rushing into deals, analysts said.
Another pause in Trump's stop-start trade policy could be helpful to opponents of his tariffs and to traders who relish volatility.
"Assuming that an appeal does not succeed in the next few days, the main win is time to prepare, and also a cap on the breadth of tariffs - which can't exceed 15 per cent for the time being," said George Lagarias, chief economist at international advisers Forvis Mazars.
Trump's trade war has shaken makers of everything from luxury handbags and trainers to household appliances and cars as the price of raw materials has risen, supply chains have been disrupted and company strategies redrafted.
Drinks company Diageo and automakers General Motors and Ford are among those who have abandoned forecasts for the year ahead.
Non-US companies including Honda, Campari and pharmaceutical companies Roche and Novartis have said they are considering moving operations or expanding their US presence to mitigate the impact of tariffs.
As markets assessed the latest twist in the trade upheaval, European export-sensitive sectors such as autos and luxury stocks were among leading gainers on Thursday.
Overall sentiment was also lifted by strong results late on Wednesday from AI bellwether Nvidia.
Spot gold declined for a fourth straight day, while US Treasury yields rose. Bond yields move inversely with prices.
But the gains in shares may be short-lived, analysts said, with those who relish risk making the most of them.
"I think we are in a period of higher volatility - we will get some more spikes on the way, I think. But volatility is the friend of the active investors," Kevin Barker, global head of active equities, UBS Asset Management, told a media briefing.
A US trade court ruling that blocked most of President Donald Trump's tariffs and found he had overstepped his authority has triggered some relief on financial markets, while adding to the uncertainties weighing on the global economy.
Among the United States' big trading partners, in the throes of negotiation with the Trump administration, Germany said it could not comment, as did the European Commission.
"We ask for your understanding that we cannot comment on the legal proceedings in the US, as they are still ongoing," a spokesperson for Germany's economy ministry said on Thursday.
"We continue to hope that a mutually beneficial solution can be reached in the negotiations between the EU Commission and the US government."
Winners on financial markets included chipmakers, banks, luxury stocks and the auto industry, all hit hard by tariff-led disruptions.
The US dollar rallied 0.2 per cent against the yen and 0.3 per cent against the Swiss franc as currencies and assets that have benefited from the tariff-induced market turmoil fell.
Wall Street stock index futures rose by more than 1.5 per cent.
The trade court ruling on Wednesday dealt a blow to Trump's central policy of using tariffs to wring concessions from trading partners.
His administration immediately said it will appeal and analysts said investors will remain cautious as the White House explores its legal avenues.
Following a market revolt after Trump's major tariff announcement on April 2, the US president paused most import duties for 90 days and said he would hammer out bilateral deals with trade partners.
But apart from a pact with Britain earlier in May, agreements remain elusive and the court's stay on the tariffs may dissuade countries like Japan from rushing into deals, analysts said.
Another pause in Trump's stop-start trade policy could be helpful to opponents of his tariffs and to traders who relish volatility.
"Assuming that an appeal does not succeed in the next few days, the main win is time to prepare, and also a cap on the breadth of tariffs - which can't exceed 15 per cent for the time being," said George Lagarias, chief economist at international advisers Forvis Mazars.
Trump's trade war has shaken makers of everything from luxury handbags and trainers to household appliances and cars as the price of raw materials has risen, supply chains have been disrupted and company strategies redrafted.
Drinks company Diageo and automakers General Motors and Ford are among those who have abandoned forecasts for the year ahead.
Non-US companies including Honda, Campari and pharmaceutical companies Roche and Novartis have said they are considering moving operations or expanding their US presence to mitigate the impact of tariffs.
As markets assessed the latest twist in the trade upheaval, European export-sensitive sectors such as autos and luxury stocks were among leading gainers on Thursday.
Overall sentiment was also lifted by strong results late on Wednesday from AI bellwether Nvidia.
Spot gold declined for a fourth straight day, while US Treasury yields rose. Bond yields move inversely with prices.
But the gains in shares may be short-lived, analysts said, with those who relish risk making the most of them.
"I think we are in a period of higher volatility - we will get some more spikes on the way, I think. But volatility is the friend of the active investors," Kevin Barker, global head of active equities, UBS Asset Management, told a media briefing.

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‘Gone': US move stopped world in its tracks
‘Gone': US move stopped world in its tracks

News.com.au

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‘Gone': US move stopped world in its tracks

The United States has joined Israel's war against Iran, with President Donald Trump announcing American warplanes had dropped bombs on three nuclear sites in Iran. The three sites that were hit included Iran's mountain facility at Fordo, the heavily fortified underground facility in Iran that is critical to its nuclear program, and a larger plant at Natanz, which had already been targeted by Iran. The third site was at Isfahan, which is where Iran is believed to keep its near-bomb-grade enriched uranium. 'A full payload of BOMBS was dropped on the primary site, Fordow,' Mr Trump announced on social media. Later in a speech at the White House, Mr Trump said the attack's objective was 'the destruction of Iran's nuclear enrichment capability and a stop to the world's number one state sponsor of terror'. 'I can report to the world the strikes were a spectacular military success. Iran's key nuclear enrichment facilities have been completely and totally obliterated,' he said. 'Iran, the bully of the Middle East, must now make peace. If they do not, future attacks will be far greater and a lot easier.' Retired US army officer John Spencer has told the ABC News the 13 tonne massive ordnance penetrators used in the attack could strike about 60 metres into the ground. 'Fordow is anywhere from 30-400 feet (nine to 121m deep). It's not one small site; it's multiple sites. We'll learn later how many bunker busters were dropped,' he said. Iran built the facility at Fordo in the 2000s, knowing that it needed to bury it deep to prevent it from being attacked. Iranian state media reported the three nuclear sites had been evacuated 'some time ago'. An official also told the IRNA news agency: 'There are no materials in these three nuclear sites that cause radiation.' Many believed the bombing could stop the potential of a weaonpised nuclear bomb from being created. US security analyst Mike Lyons told the ABC News the attack on Fordow meant Iran's nuclear program was now crippled and its uranium 'enrichment program is over, that they won't have any capability to create a weaponised nuclear bomb'. Israel had claimed Iran was rapidly nearing the capability of creating nuclear weapons, which Iran had denied alleging it was for a peaceful purposes such as a civilian power program. The US intelligence community has determined Iran's leaders were not actively pursuing a nuclear weapon, but did describe its uranium stockpile as unprecedented. CBS news is also reporting that the US had reached out to Iran diplomatically on Saturday to indicate the strikes on nuclear facilities is the only attack planned by Washington and it wasn't seeking to force a regime change. Mr Trump 'continues to hold out hope that diplomacy will now be able to proceed', according to CNN network's sources. However, Mr Spencer warned that Iran could still go the 'irrational route' and retaliate. 'It could go with Hezbollah, which still has a lot of capabilities, against Israel, (and where) there are hundred of thousands of American citizens,' he said. 'It could (activate) Shia-backed militia groups in Iraq to attack American bases. It's ballistic program, which is about 50 per cent destroyed, it could make that fatal mistake of launching ballistic missiles at American bases within its range.' Other experts argue that Iran might see a disproportionate attack as the only way to deter further strikes and could target American bases. Jonathan Panikoff, the director of the Scowcroft Middle East Security Initiative at the Atlantic Council, said Iran could seek full retaliation, which would mean 'a significant escalatory spiral that could get out of hand quickly'. Israeli military spokesman Avichay Adraee, who heads the IDF's Arab media unit, indicated that it is anticipating a reliatory attack and issued a warning. 'It was decided to move all regions of the country to the level of essential work,' he wrote on X. 'The instructions include prohibiting educational activities, gatherings, and work centres, with the exception of essential work areas.' Israeli Prime Minister Benjamin Netanyahu posted a video in response to the US attack on Iran. 'Congratulations President Trump,' he said. 'Your bold decision to target Iran's nuclear facilities with the awesome and righteous might of the United States will change history.' '(The United States) has done what no other country on Earth could do,' he continues. 'That President Trump acted to deny the world's most regime the world's most dangerous weapons.' Meanwhile, the reaction from US politicians has been mixed. 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Omar Rahman, from the Middle East Council on Global Affairs, told the ABC that Iran is likely to retaliate and the US attack could push it further towards its nuclear program. 'Iran has its back to the wall for the moment and it needs to retaliate to show some sort of credibility for the regime,' he said. 'I think you're going to see some sort of military response here against US assets and military installations in the region That could be against aircraft carriers in the Persian Gulf, it could be against any number of the bases and tens of thousands of US soldiers stationed in the region.' Meanwhile, Republican senator Lindsey Graham described it as 'the right call' adding the 'regime deserves it'. However, Kentucky Republican Thomas Massie said the US attack was 'not constitutional'. US senator and former Democratic presidential candidate Bernie Sanders condemned the attack as 'so grossly unconstitutional'. 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