What started as a regular midweek session in a U.S. federal courtroom on May 28 quickly turned into a global financial headline.
A major legal decision targeting former President Donald Trump’s controversial use of trade tariffs has shaken both Washington and world markets.
The court ruled that Trump’s approach to tariffs — a signature part of his economic legacy — went too far and crossed constitutional lines.
Almost immediately, the financial markets responded with a jolt of optimism, and political insiders started gearing up for a new legal and trade policy showdown.
Judge Strikes Down Trump’s Emergency Tariff Strategy
The ruling focused on Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs without first getting Congress involved.
According to the court, that move exceeded presidential authority, and the tariffs in question must be lifted within ten days.
Notably, this doesn’t apply to all tariffs. Those set under Section 232 of the Trade Expansion Act, which are tied to national security concerns, remain untouched for now.
Still, the decision pulls the rug out from a large part of Trump’s tariff playbook.
Unsurprisingly, Trump’s legal team filed an appeal almost immediately.
They’ve also hinted that they’re looking into other legal avenues to keep their preferred trade restrictions alive.
Markets Cheer as Tariffs Face Rollback
Wall Street wasted no time celebrating the ruling.
Investors saw it as a sign that trade tensions might finally ease, at least in part.
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S&P 500 and Nasdaq-100 futures both jumped by more than 1%.
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Big tech stocks, including names like Nvidia, led the rally with strong earnings adding fuel to the fire.
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Asian and European markets also moved higher, riding the wave of trade optimism.
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Even oil prices got a boost, climbing over $1 per barrel on hopes of more stable global demand.
One market analyst summed it up neatly: “Removing these tariffs is like unclogging a key artery in the global economy — especially for exporters and manufacturers who’ve felt squeezed for years.”
Trump’s Team Isn’t Backing Down
Despite the ruling, Trump’s allies are staying defiant.
They’ve brushed off the court’s decision as just a “temporary setback” and made it clear they’re not done fighting.
Insiders from his campaign say they’re already exploring other emergency or national security-related laws that could allow Trump — or any future president — to keep certain tariffs in place.
“This battle’s not over,” said one spokesperson. “We still have multiple legal tools we’re ready to use.”
A Turning Point for Presidential Trade Powers
Beyond the immediate headlines, this case could mark a major shift in how the U.S. government handles trade policy going forward.
Experts say the ruling may force future administrations to involve Congress before enacting wide-ranging trade restrictions — a move that would reduce executive power in this area.
It’s also a message to U.S. allies and trading partners that America’s internal system of checks and balances is still in play, even after years of aggressive and often unilateral trade moves.
What Comes Next: Political Fights and Market Jitters
For now, markets are enjoying the relief. But behind the scenes, the political tension is only just heating up — especially with election season around the corner.
Trade policy is likely to become a key issue again in the 2024 race, and this legal ruling could be just the first of many battles over how much power a president really has to shape the global economy on their own.
And while traders love fewer tariffs, they hate uncertainty — and right now, there’s still plenty of that to go around.