US Court Rules Trump’s Trade Tariffs Were Illegal, Global Markets React
A federal court in the United States has struck down trade tariffs imposed by former President Donald Trump, declaring them unlawful in a decision that could have lasting consequences for international commerce and financial markets.
The ruling came from the Court of International Trade in Manhattan, which found that the sweeping tariffs — imposed during Trump’s presidency as a protectionist measure — exceeded executive authority and were not justified under trade law. The decision follows months of global financial unrest caused by the tariffs, which impacted a wide array of countries and products.
Despite the ruling, the Trump administration has expressed its disagreement with the court's findings. As reported by Bloomberg on Thursday morning (29 May), the US government is likely to challenge the decision by filing an appeal with the Supreme Court — the nation’s highest legal authority.
Markets Recoil and Rebound
The imposition of the tariffs created shockwaves across global markets. Nations including Indonesia were subject to reciprocal trade measures, which contributed to heightened tensions and uncertainty in sectors such as manufacturing, exports, and financial services.
Global stock markets dipped in response, with risk appetite shrinking significantly in early 2025. Cryptocurrencies were not spared either. Bitcoin, in particular, took a sharp hit — entering a red zone for several weeks and trading sideways before recovering strongly to surpass US$100,000.
Analysts say the volatility reflected investor concerns over disrupted trade flows and a lack of clarity around future economic policy. "Tariffs on this scale ripple through every corner of the market," said one Sydney-based macroeconomist. "When trade slows, sentiment follows."
Legal and Political Implications
The court’s ruling could reshape how future administrations approach trade strategy. It also places a spotlight on the limits of presidential power in setting unilateral trade rules.
While Trump’s tariffs were popular with parts of his political base — particularly in the manufacturing sector — they drew criticism from economists and trade experts who argued they hurt both domestic and global economic performance.
Should the Supreme Court uphold the Manhattan court’s decision, it may trigger a wave of legal reviews on existing tariffs and trade agreements set during Trump’s term.
What’s Next?
For now, markets are in a wait-and-see mode. The Trump team’s potential appeal could delay any immediate policy changes, but the ruling has already opened the door for countries affected by the tariffs to demand redress or negotiate revised trade terms.
As 2025 unfolds, investors and governments alike will be watching closely. Whether this signals a shift toward a more multilateral trade approach or simply another legal battle in Washington remains to be seen.
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