Trump’s Tariffs Ruled Illegal, Markets Breathe a Sigh of Relief

The U.S. Court of International Trade ruled Wednesday that President Donald Trump’s sweeping tariffs violated the law

The court ruled that Trump went beyond his authority under the International Emergency Economic Powers Act (IEEPA). It found the tariffs unconstitutional and made clear the president can’t bypass Congress on trade policy.

The decision removes many of the tariffs placed on consumer goods. But it does not affect those still in place under other laws, like tariffs on steel and aluminum tied to national security.

The Trump administration has already appealed the U.S. court ruling.

Stock Market Reacts with Optimism

Meanwhile, both global and U.S. financial markets swiftly responded with optimism. Japan’s Nikkei and Germany’s DAX posted strong gains, reflecting renewed investor optimism.

In the United States, stock futures jumped on the news, signaling renewed investor optimism

Futures tied to the S&P 500 rose 1.69%, Nasdaq 100 futures gained 2.08% and Dow futures climbed 1.31% on expectations that a court ruling eases trade-related uncertainty and improves the outlook for corporate profits.

Crypto Market Shows Modest Rebound

In the crypto markets, the initial reaction was more measured. As of early Thursday, the total cryptocurrency market cap and 24-hour trading volume held steady, fluctuating within a 1% range, and currently sit at $3.42 trillion.

Bitcoin (BTC) is trading around $108,200 and Ethereum (ETH) at approximately $2,720, up around 3%, according to CoinMarketCap data.

Both assets, however, have recovered from the steep drops seen earlier this year, when Trump tariffs triggered widespread market sell-offs. Ethereum, for instance, plunged nearly 36% to $2,100 at its lowest point.

On the Flipside

• Trump’s team has already filed an appeal, which could reinstate some trade policies depending on the outcome. For both crypto and traditional markets, the ruling offers temporary relief, but volatility could return quickly if the legal tide shifts again.

Why This Matters

The ruling challenges Trump’s trade policies and signals a shift back to balanced economic decision-making. For crypto investors, easing trade tensions and clearer rules could support long-term growth, but the ongoing appeal keeps uncertainty in play.

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