Stocks and U.S. dollar rally as Trump tariffs hit court roadblock

Asian shares and Wall Street futures jumped in Asia on Thursday after a U.S. federal court blocked President Donald Trump’s “Liberation Day” tariffs from going into effect.

SYDNEY — Asian shares and Wall Street futures jumped in Asia on Thursday after a U.S. federal court blocked President Donald Trump’s “Liberation Day” tariffs from going into effect, sending the dollar up on safe haven currencies.

The little-known Manhattan-based Court of International Trade ruled that Trump overstepped his authority by imposing his April 2 across-the-board duties on imports from U.S. trade partners.

The White House quickly appealed the decision, and could take it all the way to the Supreme Court if needed, but in the meantime it offered some hope that Trump might back away from the highest tariff levels he had threatened.

“It’s long been suggested that the emergency powers Trump has used to implement tariffs were unconstitutional and that the power to enact tariffs sits with Congress,” said Kyle Rodda, a senior financial analyst at Capital.com.

“Should the markets get their way, the courts could delay and then deny these tariffs, removing one massive risk and undoubtedly stoking risk appetite.”