Federal Court Blocks Poorly Introduced Tariffs, Protracting Trade Uncertainty

Barry Adams
29 May, 2025
New York City

Wall Street indexes roared back after a federal court struck down unilateral tariffs announced by the U.S. president. 

The S&P 500 index rose 0.9%, and the tech-heavy Nasdaq advanced 1.1% amid hopes that the poorly introduced Trump tariffs may be delayed for several months. 

The U.S. Court of International Trade's three-judge panel ordered the Trump administration to stop collecting tariffs within 10 working days, ruling 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. 

The federal court's ruling brought an immediate halt to Donald Trump's signature global trade policy, further complicating the chaotic introduction of import tax. 

The federal court added that the president's tariffs fail to perform the stated objective of limiting drug trafficking into the U.S.

The White House said it plans to appeal the federal court's decision, as judges ordered the administration to stop collecting tariffs and blocked levies permanently.  

Trump's chaotic and incoherent and now illegal tariffs have whiplashed world markets, driving stock market volatility to a record high and throwing thousands of small businesses closer to bankruptcy. 

Stock market indexes rebounded in Thursday's trading, driven by expectations that additional delay in implementing sky-high import tax may delay the rebound in inflation. 

Moreover, solid earnings from Nvidia supported market enthusiasm after the artificial intelligence chip maker reported sharply higher quarterly earnings and revenues.  

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.5% to 5,915.83, the Nasdaq Composite edged up 0.8% to 19,256.31, and the Russell 2000 index advanced 0.4% to 2,076.10.

The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds declined to 4.97%.

WTI crude oil decreased $0.38 to $61.48 a barrel, and natural gas prices edged lower by $0.01 to $3.52 a thermal unit.

Gold increased by $26.58 to 3,313.00 an ounce, and silver edged up by $0.31 to $33.28.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.43 to 99.45 and traded at the lowest level since April 2022.

 

U.S. Stock Movers 

Nvidia Corp. soared 5.3% to $141.90, and the artificial intelligence chip maker reported sharply higher earnings and revenue in the latest quarter. 

The chip maker guided second-quarter revenue to be $45.0 billion, plus or minus 2%, compared to $30.0 billion a year ago.

The outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.

Capri Holdings advanced 1.6% to $18.32, and the parent company of Versace and Jimmy Choo reported a smaller-than-expected decline in revenue in the fiscal fourth quarter. 

The luxury fashion company reported a 15% decline in revenue and a wider loss in the latest quarter and trimmed its outlook, citing macroeconomic uncertainty. 

Salesforce Inc. declined 1.4% to $271.52, and the customer relations management software company reported better-than-expected revenue and earnings in the latest quarter. 

The company also boosted its annual outlook.