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Yahoo
3 days ago
- Business
- Yahoo
Trump wins temporary reprieve as he fights against court block on tariffs
The Trump administration is racing to halt a major blow to the president's sweeping tariffs after a US court ruled they 'exceed any authority granted to the president'. A US trade court ruled Donald Trump's tariffs regime was illegal on Wednesday in a dramatic twist that could block the president's controversial global trade policy. On Thursday, an appeals court agreed to a temporary pause in the decision pending an appeal hearing. The Trump administration is expected to take the case to the supreme court if it loses. The ruling by a three-judge panel at the New York-based court of international trade came after several lawsuits argued Trump had exceeded his authority, leaving US trade policy dependent on his whims and unleashing economic chaos around the world. Related: Elon Musk announces exit from US government role after breaking with Trump on tax bill On Thursday, the Trump administration filed for 'emergency relief' from the ruling 'to avoid the irreparable national-security and economic harms at stake'. The White House press secretary, Karoline Leavitt, said the judges had 'brazenly abused their judicial power to usurp the authority of President Trump' in what she characterised as a pattern of judicial overreach. 'Ultimately the supreme court must put an end to this,' she said. Leavitt's comments came as a second judge, Washington DC district court judge Rudolph Contreras, called the tariffs 'unlawful' and ordered a preliminary injunction on the collection of tariffs from a pair of Illinois toy importers, which brought the case. Tariffs typically need to be approved by Congress but Trump has so far bypassed that requirement by claiming that the country's trade deficits amount to a national emergency. This had left him able to apply sweeping tariffs to most countries last month, in a shock move that sent markets reeling. The court's ruling stated that Trump's tariff orders 'exceed any authority granted to the president … to regulate importation by means of tariffs'. The judges were keen to state that they were not passing judgment on the 'wisdom or likely effectiveness of the president's use of tariffs as leverage'. Instead, their ruling centred on whether the trade levies had been legally applied in the first place. Their use was 'impermissible not because it is unwise or ineffective, but because [federal law] does not allow it', the decision explained. Financial markets cheered the court's ruling, with the US dollar rallying in its wake, soaring against the euro, yen and Swiss franc. In Europe, the German Dax rallied 0.9%, while France's Cac 40 rose 1%. The UK's FTSE 100 blue-chip index ticked up 0.1% at the start of trading. Stocks in Asia also climbed on Thursday, while in the US stock markets all rose marginally. The ruling immediately invalidated all of the tariff orders that were issued through the International Emergency Economic Powers Act (IEEPA), a law meant to address 'unusual and extraordinary' threats during a national emergency. The judges said Trump must issue new orders reflecting the permanent injunction within 10 days. White House officials have hit out at the court's authority. The ruling, if it stands, blows a giant hole through Trump's strategy to use steep tariffs to wring concessions from trading partners, draw manufacturing jobs back to US shores and shrink a $1.2tn (£892bn) US goods trade deficit, which were among his key campaign promises. Related: Trump claimed 'tariffs are easy' – he's learning the hard way that's not the case Without the help of the IEEPA, the Trump administration would have to take a slower approach, launching lengthier trade investigations and abiding by other trade laws to back the tariff threats. The decision is also likely to embolden other challenges to Trump's policy. Last month, California's governor, Gavin Newsom, filed a lawsuit against the tariffs, arguing they were 'illegal, full stop'. The court was not asked to address some industry-specific tariffs Trump has issued on cars, steel and aluminium, using a different statute, so these are likely to remain in place for now. Analysts at Goldman Sachs said that there could be other legal avenues for Trump to impose across-the-board and country-specific tariffs, saying: 'This ruling represents a setback for the administration's tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners.' Other options for the president include sections under various trade acts that grant him powers to intervene on trade policy, albeit in an often slower and, in some instances, more limited way. Stephen Miller, the White House deputy chief of staff for policy, hit out at the ruling in a social media post that claimed 'the judicial coup is out of control'. After a relatively long – for him – period of silence on his social media platform, Trump resumed posting on Thursday, with a 500-word screed attacking the three judges who ruled against him. Trump's post began by noting that the order to unwind the tariffs had been paused temporarily by an appeals court, but then turned to baseless speculation that the three judges on the federal trade court must have been motivated by hatred for him. 'Where do these initial three Judges come from? How is it possible for them to have potentially done such damage to the United States of America? Is it purely a hatred of 'TRUMP?' What other reason could it be?' the president asked, without noting that he had appointed one of the judges himself in 2018. Trump's curiosity as to what could possibly explain the decision did not, apparently, extend to reading any of the 49-page explanation written by the court, because his post did not deal with any of the legal issues raised in the opinion. At least seven lawsuits have challenged Trump's border taxes, the centrepiece of Trump's trade policy. The court made its ruling in response to two cases. One was filed by a group of small businesses, including a wine importer, VOS Selections, whose owner said the tariffs were having a major impact and his company may not survive. The other was filed by a dozen US states, led by Oregon. 'This ruling reaffirms that our laws matter, and that trade decisions can't be made on the president's whim,' said the Oregon attorney general, Dan Rayfield. Related: Trump allies rail against court ruling blocking wide swath of tariffs The plaintiffs in the tariff lawsuit argued that the emergency powers law did not give the president the power to apply tariffs, and even if it had done, the trade deficit did not qualify as an emergency, which is defined as an 'unusual and extraordinary threat'. The US has run a trade deficit with the rest of the world for 49 consecutive years. Trump also targeted imports from Canada, China and Mexico, claiming his decision was meant to combat the illegal flow of immigrants and the synthetic opioids across the US border. His administration pointed to the court's approval of Richard Nixon's emergency use of tariffs in 1971, and claimed that only Congress, and not the courts, could determine the 'political' question of whether the president's rationale for declaring an emergency complied with the law. Reuters and the Associated Press contributed reporting
Yahoo
5 days ago
- Business
- Yahoo
UK stock markets rise with trading steady while US tariffs ‘in limbo'
UK stock markets have ended the month in the green as markets remain steady in the face of persistent uncertainty over Donald Trump's tariffs. London's FTSE 100 rose 55.93 points, or 0.64%, to close at 8,772.38. The index outperformed European peers, with Germany's Dax rising 0.27%, while France's Cac 40 closed 0.36% lower. Trading started off on the back foot over on Wall Street. The S&P 500 was down about 0.35%, and Dow Jones was 0.15% lower by the time European markets closed. A group of equity analysts for Barclays wrote in a research note: 'Equity markets held steady this week amidst ever changing policy narratives.' 'It also shows that investors are reacting more calmly to tariff headlines now, viewing them increasingly as negotiation tactics.' They added that there were signs of 'fatigue' among traders as Mr Trump's trade policy is held 'in limbo'. In new developments this week, the US president is fending off potential roadblocks to his trade policies from the US courts. On Thursday, a federal appeals court said it was allowing Mr Trump to continue collecting import taxes for now, a day after a lower court blocked the duties. Barclays' analysts said the 'guessing game on tariffs leaves the market exposed' to sharp moves as a result of the changes. Meanwhile, the pound was down about 0.1% against the US dollar, at 1.348, and rising around 0.1% against the euro, at 1.187. In company news, M&G said it had partnered with Japanese life insurer Dai-ichi Life to accelerate the group's expansion into European private markets, and give it greater access to markets in Japan and across Asia. Dai-ichi Life plans to buy a 15% stake in M&G as part of the deal, the firm said, which would make it the largest shareholder in the British investment firm. Shares in M&G rose 5.5% on Friday, making it the biggest riser on the FTSE 100. BP announced it has appointed David Hager to its board of directors, who joins following a 40-year career in the oil and gas industry, including as the former chief executive of Devon Energy. Mr Hager 'brings deep-rooted knowledge of the US upstream oil and gas industry', BP's chair Helge Lund said. BP's shares closed 0.5% higher. The biggest risers on the FTSE 100 were M&G, up 12.3p to 236.7p, GSK, up 51p to 1,507p, BT, up 5.5p to 179.45p, AstraZeneca, up 322p to 10,720p, and Unite Group, up 21.5p to 861p. The biggest fallers on the FTSE 100 were IAG, down 6.7p to 326.1p, Spirax, down 100p to 5,715p, Compass Group, down 45p to 2,605p, Polar Capital Technology Trust, down 5.5p to 326.5p, and Rio Tinto, down 59p to 4,402p.
Yahoo
6 days ago
- Business
- Yahoo
FTSE drifts into the red as Trump tariff ruling boosts Wall Street
London stocks were treading water on Thursday as Europe was broadly unmoved by a US court ruling on President Trump's tariff plans. The move by the US Court of International Trade to block reciprocal tariffs unilaterally imposed by the President was, however, welcomed on Wall Street which made further gains after the opening bell. But traders in the UK, which is expected to see its set of US tariffs largely unchanged, failed to react much to the news, with sentiment largely directed by earnings updates, including a poor reception to figures from Auto Trader. The FTSE 100 London's top index finished down by 0.11%, or 9.56 points, to close at 8,716.45. Europe's other major markets lost early gains as investors and traders digested the tariff ruling, with analysts suggesting it may ultimately have little impact. The Cac 40 ended flat for the day, while the Dax index was down 0.29%. Chris Beauchamp, chief market analyst at IG, said: 'For the FTSE 100 and other European markets, today has been a case of selling the news. 'Indices on the continent have struggled to make headway today but, given the size of the rally in recent weeks and the looming month-end, it is perhaps not surprising to see the move take a breather. 'The Trump administration is sure to appeal the decision, and will also look to employ other methods to impose tariffs, so the court decision is not a definitive resolution of the issue.' In the US, the tech-focused Nasdaq opened higher as it was also buoyed by gains from Nvidia after the chip giant's latest trading update. Meanwhile, sterling pulled back some ground against the dollar during the session. The pound was 0.11% higher at 1.348 US dollars and was down 0.5% at 1.186 euros when London's markets closed. In company news, Auto Trader was a notable faller despite revealing growing demand for used cars. The car-selling platform revealed that the UK's new car market grew 3% last year, but this was driven by sales of company or 'fleet' vehicles, while sales to consumers fell 4% year-on-year. Shares in the company dropped by 11.3% at the end of trading. FTSE 100 firm Relx slipped in value after it was knocked by US health secretary Robert F Kennedy Jr's threat to ban government scientists publishing in medical journals. The publisher of The Lancet, which was among titles mentioned directly by Mr Kennedy, saw shares slip by 1.9% as a result. Bowling alley operator Hollywood Bowl was firmly lower at the close after the recent spell of warm weather dented sales as Britons headed out into the sunshine. Shares in the business were 10.3% lower after it suffered a 'short-term' hit to its UK bowling chain between March and May, during the sunniest UK spring on record. The price of oil pulled back after initially climbing due to hopes the tariff ruling could support international energy demand. A barrel of Brent crude oil was 1.65% lower at 62.12 dollars (£46.04) as markets were closing in London. The biggest risers on the FTSE 100 were: Segro, up 27.8p to 701p; Fresnillo, up 37p to 1,171p; ConvaTec, up 8.6p to 290.4p; Glencore, up 5.85p to 277.9p; and Legal & General, up 4.2p to 246.8p. The biggest fallers on the FTSE 100 were: Auto Trader, down 101.4p to 798.6p; National Grid, down 40.5p to 1,031p; CocaCola HBC, down 94p to 3,842p; Severn Trent, down 62p to 2,660p; and Kingfisher, down 6.1p to 279.2p.
Daily Mail
23-05-2025
- Business
- Daily Mail
Fresh sell-off on trade fears: Trump's 50% EU tariff threat rattles markets
Stocks fell sharply yesterday after Donald Trump reignited the global trade war with the threat of a 50 per cent tariff on European Union goods. The FTSE 100 immediately fell by more than 100 points before closing down 0.2 per cent, or 21.29 points, to 8,717.97. Stock markets in Europe suffered bigger falls, with France's Cac 40 and Germany's Dax each down by more than 2 per cent. The Cac 40 closed 1.7 per cent lower and the Dax 1.5 per cent down. Traders in New York were also unnerved by Trump's renewed appetite for tariffs – coming after US deals with Britain and China that had seemed to signal a cooling in his approach. Wall Street's Dow Jones index fell 0.4 per cent, the S&P 500 dropped 0.5 per cent and the Nasdaq slumped 0.6 per cent. Apple shares slid nearly 3 per cent after the US President singled out the firm with a threat to impose a 25 per cent charge on any iPhone purchased in America not made in the country. More than 60m are sold in the US annually but currently none are made there. Fawad Razaqzada, market analyst at City Index, said: 'All the optimism over trade deals wiped out in minutes – seconds, even.' Neil Wilson, UK investor strategist at Saxo Markets, added: 'This was not in most people's playbooks.' In a post on his Truth Social platform, Trump said the EU was 'very difficult to deal with' and 'our negotiations with them are going nowhere'. He also wrote: 'I am recommending a straight 50 per cent tariff on the European Union, starting on June 1, 2025.' Car makers were among the big fallers on European markets with Volkswagen down 3 per cent, BMW sliding by 3.7 per cent, Renault off by 1.2 per cent and Stellantis – owner of Vauxhall, Peugeot, Chrysler and Fiat – falling 4.6 per cent. On the FTSE 100, British Airways owner International Airlines Group was among the big fallers, down 2 per cent, or 6.6p, to 319.8p. Banks were also selling off yesterday, with Standard Chartered slipping 1.3 per cent, or 15p, to 1151p and Barclays down by 1 per cent, or 3.35p, to 323.3p. Apple shares tumbled after Trump said in a post on social media: 'I have long ago informed Tim Cook [chief executive] of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else.'
Yahoo
22-05-2025
- Business
- Yahoo
FTSE 100 slides after jump in UK Government borrowing
The FTSE 100 slumped on Thursday after new data showed UK Government borrowing surged higher than expected last month. London's blue-chip index ended the day down 47.20 points to finish the day at 8,739.26, a 0.54% fall. Earlier in the day, official figures showed that public sector net borrowing in the UK soared above expectations to £20.2 billion, leading economists to predict that tax increases 'feel inevitable' later this year. The state borrowing figure reflects the difference between Government spending and its income, largely through tax receipts. Ruth Gregory, deputy chief UK economist at Capital Economics, said: 'April's public finances figures showed that despite the boost from the rise in employers' national insurance contributions, the fiscal year got off to a poor start. 'With the PM (Prime Minister) announcing a partial U-turn on the cut to winter fuel payments, the dilemma faced by the Chancellor over how to deal with increased spending pressures in an environment of low economic growth and high interest rates hasn't gone away. 'With the markets seemingly uneasy about more public borrowing, further tax rises are starting to feel inevitable.' In Europe, Germany's Dax fell 0.47% and France's Cac 40 fell 0.58%. On Wall Street, the S&P 500 was up 0.15% as UK markets were closing, while the Dow Jones was up 0.12%. Sterling was up 0.04% against the US dollar at 1.3424, while it was 0.5% up against the euro at 1.1901. In company news, BT's share price jumped higher after the telecoms giant said it was on track to deliver its major cost-cutting programme and had made more than £900 million annual savings so far. The firm said underlying earnings rose 1% to £8.21 billion in the year to the end of March, as cost savings helped offset a 2% fall in revenues. It is forecasting earnings to be broadly flat over the next financial year, between £8.2 billion and £8.3 billion. BT shares closed 3.6% higher. Elsewhere, Bloomsbury shares plummeted by a fifth after the publisher revealed its pre-tax profits slipped by 22% to £32.5 million for the year to the end of February, compared with the previous year. This was despite revenues rising by 5% year-on-year, as it benefited from expanding its consumer portfolio, and its non-consumer division was boosted by the acquisition of US publisher Rowman & Littlefield. Bloomsbury shares were down 19.5% at close. The biggest risers on the FTSE 100 were Hiscox, up 90p to 1284p, BT, up 6.1p to 175.35p, Pershing Square, up 130p to 3,856p, Beazley, up 30.5p to 949.5p, and Marks & Spencer, up 9.3p to 384p. The biggest fallers on the FTSE 100 were DCC, down 234p to 4,540p, Intermediate Capital, down 86p to 1,982p, Diageo, down 72p to 2,061p, Intertek, down 162p to 4,758p, and Kingfisher, down 9.9p to 300p. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
