Court's Tariff Block Stirs Markets Amid Global Trade Tensions

A U.S. trade court has ruled against most tariffs imposed by President Donald Trump, sparking a temporary sense of relief in financial markets but adding to global economic uncertainty. Key trading partners, including Germany and the European Commission, have refrained from commenting on ongoing U.S. legal proceedings, while expressing hope for a mutually beneficial solution with the Trump administration.

Markets responded favorably, with a notable rally in sectors including semiconductors, banks, luxury stocks, and auto industries, previously hard-hit by tariff disruptions. The U.S. dollar gained against the yen and Swiss franc, as the financial fallout from tariffs diminished. Wall Street also saw a significant upturn with stock index futures rising over 1.5%.

However, the Trump administration plans to appeal, and analysts warn investors remain cautious as the White House explores new legal strategies. The ruling may dissuade countries, such as Japan, from hastily entering trade agreements. Though offering temporary reprieve to Trump's tariff critics, the court decision adds another layer of complexity to a tumultuous trade landscape.

(With inputs from agencies.)