Court Ruling on Tariffs Sends Markets into Frenzy

In a significant judicial intervention, a U.S. federal court has temporarily blocked President Trump's proposed tariffs, causing a sharp reaction in both European stocks and Wall Street futures. The ruling triggered a rise in the dollar against traditional safe-haven currencies, such as the Japanese yen and Swiss franc.

The Court of International Trade in Manhattan ruled against the tariffs, asserting that Trump overstepped his authority with the duties he planned to impose from April 2. This development has allowed a temporary respite in the markets, although uncertainty remains about the administration's next steps, including a potential appeal to the Supreme Court.

While the court decision disrupts immediate tariff plans, it does not preclude other levies, leaving major trading partners and market analysts cautiously observing the situation. Meanwhile, U.S. Treasury yields rose, impacting market sentiment amid fears of sustained inflation pressure from Trump's tariff policy.

(With inputs from agencies.)