Legal Blow to White House Trade Agenda Fuels Market Uncertainty
⚖️ Court Ruling Halts Tariff Expansion
Global markets lost momentum Thursday as investor excitement over the U.S. Court of International Trade’s (CIT) decision to vacate President Donald Trump’s reciprocal tariffs began to fade. The court’s ruling effectively blocks the White House from enforcing steep new tariffs unless it finds an alternative legal path.
Markets initially welcomed the decision, viewing it as a relief from escalating trade tensions. But optimism waned quickly as analysts and policymakers suggested Trump’s administration could maneuver around the ruling using other trade laws.
🌍 Global Market Reaction: A Measured Retreat
- Europe’s Stoxx 600: Up 0.2%, easing from 0.5% earlier
- FTSE 100: Near flat
- Germany’s DAX: Up 0.1%
- U.S. stock futures: Still positive but below pre-dawn highs
- Euro & Pound: Both reversed losses to post slight gains against the dollar
Travel stocks outperformed in Europe, with the sector up 1.15%, reflecting hopes that fewer trade tensions could boost cross-border activity.
🏦 UK’s Nationwide Reports Strong Results Amid Market Noise
Amid the trade headlines, U.K. building society Nationwide reported a 30% jump in annual profits to £2.3 billion, and a record £2.8 billion returned to members. Growth in mortgage lending, deposits, and disciplined cost management fueled the gains. The bank also highlighted its acquisition of Virgin Money as a major strategic step forward.
📊 Goldman Sachs: Expect a Legal Workaround
According to Goldman Sachs, the administration is likely to appeal the CIT ruling but will also seek to reimpose tariffs under Section 301 of the Trade Act of 1974 — the same tool used during Trump’s previous China trade war. If urgency is required, the White House may invoke Section 122, which allows tariffs of up to 15% for 150 days without Congressional approval.
However, logistical and legal limitations mean not all U.S. trading partners may be targeted immediately. Broader tariff reinstatements could take months, and market volatility may rise as a result.
📌 Conclusion: Relief Meets Reality
While the court ruling initially sparked market optimism, the realization that the White House still has several legal levers to pursue its trade agenda has tempered sentiment. Investors should prepare for continued policy-driven volatility, especially as the administration explores executive authority to revive parts of the vacated tariff strategy.
Markets are no longer shocked by Trump’s trade pivots, but uncertainty remains a persistent theme — and traders would be wise not to get too comfortable.
