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US court suspends Trump's' Liberation Day 'tariffs, global market rebounds strongly
industry9 months before
Summary：The US federal court ruled on May 28th that former President Trump's "Liberation Day" tariffs were unconstitutional and demanded their repeal, quickly boosting global market confidence. The major stock indices in the Asia Pacific and the US have collectively rebounded, and investors generally expect the international trade environment to become more rational and stable. Analysis suggests that judicial intervention demonstrates the binding force of the rule of law on economic policies, providing a new window of confidence for global trade and investment.
On May 28th, the US federal court made an important ruling on former President Trump's "Liberation Day" tariffs, finding that his practice of imposing tariffs on large-scale imported goods without congressional authorization violated the Constitution and demanding their repeal within ten days. This ruling not only quickly triggered positive feedback from the international financial market, but also injected confidence into the return to stability of the global trade order.
The "Liberation Day" tariffs were proposed by Trump in April this year, aiming to protect domestic manufacturing with tough measures and respond to so-called "unfair international competition". However, this policy has been controversial since its release, facing joint opposition from domestic American companies, international partners, and multiple industry associations. Multiple parties are concerned that tariff escalation may trigger global trade retaliation, causing a new round of impact on the already fragile supply chain and even affecting the global economic recovery process.
The court pointed out in the judgment that the president does not have unlimited authorization on trade tariffs, and any major trade policy must be subject to congressional supervision, otherwise it will violate the constitutional basis of the separation of powers in the United States. This judicial intervention not only corrected administrative overreach, but also set a model for the rule of law in major economies around the world.
The market reacted quickly to this. After the announcement of the verdict, major stock indexes in the Asia Pacific region collectively strengthened, with the Nikkei 225 index rising 1.1% and the South Korean KOSPI index rising 1.2%. US stock index futures also rebounded across the board, with Dow Jones futures up 1.4%, and S&P 500 and Nasdaq 100 futures also showing significant gains. Analysts believe that as the uncertainty of the trade environment decreases, the global supply chain is expected to regain vitality, and cross-border investment confidence is expected to increase simultaneously.
The latest report from JPMorgan Chase points out that this judicial ruling greatly alleviates market concerns about global trade frictions and helps stabilize investment expectations. Wall Street analyst Steve Lambert commented, "The judicial system's effective checks and balances on executive power provide legal safeguards for the stability of the global trading system
Overall, the US court's suspension of the "Liberation Day" tariffs is a powerful regulation of the rule of law and economic policies, and also opens a new window for global financial markets to repair. The market generally expects that the international trade and investment environment will gradually recover in a rational and orderly manner.
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