Markets welcome court ruling against Trump’s tariffs as shares, U.S. dollar, oil gain

U.S. Court blocks Trump's tariffs, markets react positively with futures up, oil prices rising, and dollar strengthening.

Financial markets welcomed a U.S. Court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.

U.S. futures jumped on Thursday (May 29, 2025), and oil prices rose more than $1. The U.S. dollar rose against the yen and euro.

The Court found the 1977 International Emergency Economic Powers Act, which Mr. Trump has cited as his basis for ordering massive increases in import duties, does not authorise the use of tariffs.

The White House immediately appealed and it was unclear if Mr. Trump would abide by the ruling in the interim. The long-term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Mr. Trump's trade war.

The future for the S&P 500 was up 1.7% while that for the Dow Jones Industrial Average gained 1.4%.

Japan’s Nikkei 225 index jumped 1.9% to 38,442.10. America’s largest ally in Asia has been appealing to Mr. Trump to cancel the tariffs he has imposed on imports from Japan and to also halt the 25% tariffs on steel, aluminum, and autos.

The ruling also pushed the dollar sharply higher against the Japanese yen. It was trading at 145.98 yen on Thursday, up from 144.87 yen late Wednesday (May 28, 2025).