Stocks and Dollar Climb After Trump Tariffs Face Legal Setback - Jordan News
Stocks and Dollar Climb After Trump Tariffs Face Legal Setback Asian stocks and Wall Street futures rose on Thursday after a U.S. federal court blocked the implementation of President Donald Trump's 'Liberation Day' tariffs, triggering a rally in the U.S. dollar against safe-haven currencies. اضافة اعلان The U.S. Court of International Trade, a little-known Manhattan-based court, ruled that Trump exceeded his authority when he imposed sweeping tariffs on imports from U.S. trade partners on April 2. The White House quickly appealed the decision and may escalate the case to the Supreme Court if necessary. In the meantime, the ruling sparked hopes that Trump might back down from the steepest tariff threats. Kyle Rodda, senior financial analyst at Capital.com, said, 'It's long been argued that the emergency powers Trump used to impose tariffs are unconstitutional, and that the authority to impose tariffs rests with Congress. If things go as markets hope, the courts could delay and ultimately strike down these tariffs, removing a major risk and encouraging risk appetite.' This could also prompt U.S. trade partners to hold off on entering new trade negotiations with the White House, opting instead to wait for the case's resolution. However, analysts at Goldman Sachs pointed out that the ruling does not block sector-specific tariffs and that Trump still has legal avenues to impose broad or country-specific tariffs. In a note, analyst Alec Phillips wrote: 'This ruling is a setback for the administration's trade plans and increases uncertainty, but it may not significantly alter the outcome for most of the U.S.'s major trading partners.' Market Reaction Investors responded by embracing equities. Japan's Nikkei index rose 1.7%, while South Korean stocks climbed 1.8% to a nine-month high. The MSCI broadest index of Asia-Pacific shares outside Japan advanced 0.5%, and China's blue-chip stocks gained 0.6%. The ripple effects extended globally, with EUROSTOXX 50 futures up 1.3%, FTSE futures gaining 0.8%, and German DAX futures rising 1.1%. Relief from Nvidia Earnings S&P 500 futures rose 1.6%, while Nasdaq futures jumped 2.0%, partly supported by stronger-than-expected earnings from Nvidia. The AI and semiconductor giant also forecast robust revenue for the current quarter, sending its stock up 4.4% in after-hours trading. This helped offset a Financial Times report that the White House ordered U.S. semiconductor design software firms to halt services to Chinese companies. In a separate report, The New York Times said the U.S. has suspended some tech exports to China, including aircraft engine components, semiconductors, and certain chemicals. Dollar and Bonds News of the court ruling pushed safe-haven currencies lower. The dollar rose 0.7% against the Swiss franc to 0.8327 and 0.7% against the Japanese yen to 145.86. The euro slipped 0.4% to $1.1245. U.S. 10-year Treasury yields rose 3 basis points to 4.51%, and expectations for near-term rate cuts by the Federal Reserve diminished. Minutes from the latest Fed meeting showed 'most participants noted the risk that inflation could be more persistent than expected,' partly due to Trump's tariffs. Markets now see just a 22% chance of a rate cut in July, while the probability for September has dropped to around 60%, down from over 100% a month ago. Commodities In commodities, gold fell 0.5% to $3,271 per ounce. Oil prices continued climbing, driven by supply concerns after OPEC+ maintained its production policies and the U.S. blocked Chevron from exporting Venezuelan crude. Brent crude rose 96 cents to $65.87 a barrel, while U.S. crude gained $1 to reach $62.84 a barrel.
—Reuters
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Ammon News - BALTIMORE – Five months into his second presidency, Donald Trump is already ushering in a new era of imperial technological governance in which both domestic and foreign regulatory authorities are subordinated to a US administration increasingly dominated by Big Tech. Silicon Valley has cultivated its political influence through aggressive lobbying and strategic presidential appointments. Now, despite the tech industry's distaste for Trump's tariffs and policy priorities, its efforts are paying off, as Republican leaders work to stymie tech regulation not just in Congress – where legislative progress was always unlikely – but also at the state level and around the world. As part of Trump's 'big, beautiful' budget bill, lawmakers are considering a decade-long ban that would block US states from regulating AI. The proposed ban would severely undermine efforts to mandate transparency in AI systems, protect consumers from algorithmic price fixing, and curb worker surveillance. Although it's unlikely to survive the Senate's procedural rules, Republican Senator Ted Cruz has pledged to pursue a similar prohibition in future legislation. For the tech industry, federal preemption has long been a reliable strategy for avoiding troublesome state laws. It also dovetails with Republican efforts to centralize AI regulatory authority within the White House. This may explain why the debate over the proposed ban has largely focused not on states' rights, but on geopolitical anxieties. For example, at a congressional hearing on the proposal, lawmakers and expert witnesses turned what should have been a conversation about the role of statehouses in Sacramento and Denver into sprawling diatribes against overregulation in Brussels and authoritarianism in Beijing. If the United States ends up with a patchwork of state AI laws, the argument goes, American companies will struggle to innovate and compete with China. Throughout that hearing, industry speakers repeatedly cited flagship European Union regulations like the GDPR and AI Act, arguing that regulatory overreach has hindered Europe's ability to produce world-class tech companies. The message was clear: to defeat China, the US must not become another Brussels. But is Brussels still Brussels? Well before any discussion of AI preemption, the Trump administration had begun pressuring the EU into watering down tech laws like the Digital Services Act and Digital Markets Act. In February, speaking before a room of EU and world leaders at an AI summit in Paris, Vice President J.D. Vance decried the 'onerous international rules' that apply to US businesses. At the same summit, French President Macron signaled his desire for the EU's tech laws to 'simplify' and 'resynchronize with the rest of the world.' There are signs this strategy is working. The EU's recent AI Continent Action Planreflects a softer approach to regulation, and enforcers are scaling back fines on US tech firms. Meanwhile, those same US companies are keeping up the pressure, lobbying the European Commission to keep AI rules 'as simple as possible.' Tech regulation also remains a point of contention in Trump's trade policy. In May, Trump threatened to impose 50% tariffs on EU imports as negotiations over digital taxes and tech regulation remained deadlocked. US politicians often portray the 'Brussels Effect' as a cautionary tale, based on the largely discredited notion that the EU, obsessed with setting de facto global standards, overplayed its hand and ultimately sabotaged its own tech sector. 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The Trump administration isn't favoring red states over blue, or cooperating with European allies to beat China. Instead, it is seeking to strip power from state authorities and foreign partners alike, prioritizing predation over effective governance.
