Trump’s Tariffs Struck Down in Court — Global Markets Surge, but His Team Has a Backup Plan

On May 28, a U.S. federal court struck down a central pillar of Donald Trump’s trade policy, ruling that the former president’s use of emergency powers to impose sweeping tariffs violated constitutional limits. The decision sent shockwaves through the global economy — and financial markets responded instantly with a sharp upward swing.

The Legal Ruling That Shook Trade Policy

The court found that Trump overstepped his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose tariffs without Congressional approval. The ruling orders the tariffs to be lifted within 10 days.

However, not all tariffs are affected. Duties introduced under Section 232 of the Trade Expansion Act of 1962 — those tied to national security — remain in force. Trump’s legal team has already filed an appeal and hinted at deploying alternative legal tools to reimpose or preserve key tariffs.

Markets React With Optimism

Investors welcomed the ruling as a potential de-escalation of global trade tensions:

• Futures for the S&P 500 and Nasdaq-100 rose by more than 1%.
• Tech shares led the rally, boosted by strong earnings from firms like Nvidia.
• Asian and European indexes posted gains amid optimism over improved trade outlooks.
• Oil prices climbed by over $1 per barrel as market sentiment improved.

“The rollback of tariffs lifts a major weight off the global supply chain,” one analyst noted, “especially for manufacturers and commodity exporters.”

Trump’s Counterstrategy

The former president’s team has called the ruling a “temporary setback” and is already preparing to challenge it. According to campaign sources, Trump is exploring alternative legal frameworks to maintain a core set of tariffs — potentially using national security or emergency provisions tied to different statutes.

“This is far from over,” a spokesperson said. “We have multiple tools at our disposal.”

Broader Implications for U.S. Trade Policy

The court’s decision represents a major blow to executive authority over trade — and a potential turning point in how future tariffs are imposed. Legal scholars argue the ruling may force future administrations to seek Congressional consent before enacting aggressive trade measures.

It also sends a signal to international partners that the United States' internal checks and balances are alive and well — especially after years of unilateral trade decisions.

Final Note: Markets May Celebrate, but Politics Is Just Warming Up

The legal defeat of Trump’s tariffs may fuel short-term optimism on Wall Street, but it also sets the stage for renewed political and legal battles. With the 2024 campaign trail heating up, trade — and executive power — could become central issues once again.

And if there’s one thing markets hate more than tariffs, it’s uncertainty.