NY futures soar after US court blocks Trump's tariff hikes, dismantling one of the pillars of the White House's economic policy.

A problem for Trump, a temporary relief for the markets.

The courts dismantled Trump's tariff plan

The U.S. Court of International Trade has ruled that the president cannot impose unilateral tariffs.

Not even under the claim of “economic emergency”.

Control of foreign trade remains with Congress.

Trump's attempt to expand his economic powers is threatened by domestic issues.

The legal basis was fragile: IEEPA

This is a 1977 law that allows emergency actions in international crises.

Trump used this device to justify broad tariffs.

The White House justified this by saying that the objective was to contain drugs and illegal immigration. But the court rejected it, stating that it is not possible to use the IEEPA to charge the entire world.

Thus, tariffs against China, Mexico and Canada were suspended.

The court decision affected investors' mood:

• S&P 500 futures jumped more than 100 points • Nasdaq accelerated strongly • Small caps rising heavily • Asian stock markets followed suit • And the VIX plummeted almost 4%

The market understood the decision as a retreat from protectionism and a possible brake on global inflationary pressure.

The White House rushed to appeal.

The government immediately filed an appeal. But the decision exposed the weakness of the legal basis of the tariff package.

Creating broad tariffs without Congress fails the constitutional test.

The timing couldn't be worse for POTUS

Trump tries to pass a new budget with:

• Trillion-dollar tax cuts • More defense spending

However, with the tariffs blocked, the projected revenue disappears from the map. And the narrative of fiscal responsibility loses strength.

To make matters worse, Elon Musk jumped ship.

After 130 days, Musk left DOGE — the Department of Government Efficiency created by Trump.

He came out firing, saying that the new budget undermines all the work done so far.

Losing Musk at this time is a hard blow to the government's fiscalist image.

Interest rates continue to warn of a BIGGER problem.

Even with the market's “good mood” and the rally in the stock markets, 10-year and 2-year Treasury yields rose again this morning.

This shows that investors will continue to demand more premium to finance the government while the fiscal mess remains.

📌 Summary

• The courts blocked Trump's tariff hike. • The legal basis of the package has collapsed. • The White House appealed, but is weakened. • Markets rise sharply. • On the other hand, interest rates also continue to rise. • At the same time, Musk decided to leave the government.