European Markets Rebounded After US Court Blocked Bulk of Tariffs

Bridgette Randall
29 May, 2025
London

European markets surged after a U.S. court ruling blocked global tariffs imposed by the U.S. president. 

Benchmark indexes in Frankfurt, Paris, Milan, and London jumped in the hopes that the "permanent injunction" by a court in Manhattan will at least temporarily delay tariffs. 

The U.S. Court of International Trade's three-judge panel ordered the Trump administration to implement the block within 10 working days, citing that the president wrongfully used emergency laws to justify levies. 

The order stops 30% tariffs on China, 25% tariffs on some imports from Mexico and Canada, and 10% universal tariffs on global imports. 

However, the ruling does not apply to 25% tariffs on vehicle and parts imports that were subject to Section 232 and Section 301. 

Global markets have swung wildly over the last two months after the U.S. president announced the so-called "reciprocal tariffs" on April 2. 

The court's ruling is the latest iteration over the last ten weeks, as the Trump administration has walked back and shifted stance for key trading partners amid resistance from key trading partners—China, Mexico, and Canada. 

Despite the court's permanent ban, investors fear that the Trump administration will find other ways to impose tariffs or trade barriers, potentially limiting international trade and raising prices for American consumers and businesses. 

 

Europe Indexes and Yields

The DAX index increased by 0.6% to 24,185.37, the CAC-40 index edged higher 1.0% to 7,866.14, and the FTSE 100 index advanced 0.02% to 8,727.87.

The yield on 10-year German bonds inched higher to 2.58%, French bonds increased to 3.24%, the UK gilts moved down to 4.72%, and Italian bonds edged higher to 3.57%.

The euro decreased to $1.13; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 82.96 Swiss cents.

Brent crude increased $0.97 to $65.89 a barrel, and the Dutch TTF natural gas was higher by €0.46 to €36.99 per MWh.

 

Europe Movers

Semiconductor and artificial intelligence-linked stocks advanced after Nvidia reported a surge in revenue and earnings in its latest quarter. 

Infineon Technologies increased 2.2% to €35.18, STMicroelectronics advanced 2.4% to €22.92, and ARM Holdings PLC advanced 3.2% to €124.0. 

Luxury stocks were among the top performers after the U.S. court ruling. 

Kering SA increased 1.5% to €176.14, LVMH added 1.2% to €489.30, and Hermes International gained 1% to €2,407.0.