Asian shares declined on Friday after a U.S. appeals court granted a temporary reprieve to former President Donald Trump’s sweeping tariffs, reigniting uncertainty just a day after judges ruled the measures unconstitutional. The losses reversed a global market rally seen the previous day, with analysts warning that ongoing legal battles could exacerbate volatility and complicate trade negotiations between the U.S. and other governments.
While the tariffs have been temporarily halted and are expected to proceed through the courts—potentially reaching the Supreme Court—experts anticipate that Trump may pursue alternative avenues to implement similar measures.
On Wednesday, the U.S. Court of International Trade blocked most of the tariffs announced during Trump’s presidency, stating he had exceeded his authority—a decision Trump labeled “horrible” and vowed to overturn. “Backroom ‘hustlers’ must not be allowed to destroy our Nation!” he wrote on his Truth Social platform. Separately, a federal district judge in Washington, D.C., also deemed some levies unlawful, giving the administration 14 days to appeal.
Observers noted that the legal wrangling has sparked speculation about ongoing trade talks, including those between the U.S. and the European Union, as well as a recently struck deal with Britain. However, Kevin Hassett , director of the National Economic Council, downplayed concerns, telling Fox Business that “hiccups” caused by “activist judges” would not derail negotiations, adding that three agreements were nearing finalization.
Related News
- US court halts Trump tariffs, cites lack of legal authority
- European markets rally as Trump delays 50% EU tariffs
- Trump threatens 25% tariff on iPhones not made in US
Rodrigo Catril , an analyst at National Australia Bank, stated that while the legal battle adds another layer of uncertainty, it does not necessarily derail Trump’s trade agenda. “The president has other means to impose tariffs,” Catril said, adding that the ongoing shift in U.S. trade policy is creating a cloud of unpredictability, which could lead to reduced investment and hiring.
Meanwhile, U.S. Treasury Secretary Scott Bessent told Fox News that negotiations with China were “a bit stalled,” suggesting Trump might need to engage directly with Chinese President Xi Jinping. This comes weeks after the two economic superpowers agreed to ease tensions in their trade war.
Financial markets reacted cautiously to the developments. Hong Kong and Tokyo fell over 1%, while Shanghai, Seoul, Manila, Mumbai, and Bangkok also declined. Sydney and Wellington edged up slightly, and London and Frankfurt posted modest gains, though Paris remained flat. Wall Street saw tepid performance overnight, with major indexes ending marginally higher amid concerns over weaker-than-expected economic data.
Currency markets saw the yen strengthen after inflation figures in Tokyo exceeded forecasts, raising expectations for a potential interest rate hike by Japan’s central bank in July.
Key Figures at 0715 GMT:
- Tokyo – Nikkei 225: DOWN 1.2% at 37,965.10 (close)
- Hong Kong – Hang Seng Index: DOWN 1.5% at 23,230.19
- Shanghai – Composite: DOWN 0.5% at 3,347.49 (close)
- London – FTSE 100: UP 0.3% at 8,744.50
- Euro/dollar: DOWN at $1.1348 from $1.1368
- Pound/dollar: DOWN at $1.3482 from $1.3494
- Dollar/yen: DOWN at 143.81 yen from 144.19 yen
Follow us on Instagram.
https://www.instagram.com/businessnewsng?igsh=ZXpweTdjOGF1ZXdu
