Global stocks have rallied in response to the US Supreme Court striking down President Donald Trump's sweeping trade tariffs, with the UK-based Ftse 100, S&P 500 and tech-focused Nasdaq surging in reaction to the news.
This afternoon, the highest court in the US declared the Trump administration's signature economic policy to be illegal in a major blow to the White House's fiscal agenda going forward.
This rally comes after a disappointing gross domestic product (GDP) figure for the US, with growth slowing to 1.4 per cent in the fourth quarter of 2025.
Following the Supreme Court's judgement, the Ftse 100 surpassed 10,700 for the first time ever with similar movements happening in European stock market indexes.
The stock market has rallied in response to the US Supreme Court judgement
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As well as this, the Dow Jones jumped 93.81 points, or 0.2 per cent, rebounding from a 200-point loss earlier in the session following today's GDP figures.
Furthermore, the S&P 500 bounced 0.3 per cent, while the Nasdaq went up by 0.5 per cent in reacting to today's judgement.
The majority of President Trump's tariffs, which were imposed under the International Emergency Economic Powers Act, with the majority of Supreme Court rulings that that law “does not authorize the President to impose tariffs.”
However, it should be noted that today's ruling did not address whether tariffs that have already been paid would need to be refunded.
The stock market has been volatile since Trump returned to office | ReutersLATEST DEVELOPMENTS
IN DEPTH: How would Trump's tariffs impact Britain? British exports to the US ranked | GB NEWSA Government spokesman said: "This is a matter for the US to determine but we will continue to support UK businesses as further details are announced.
"The UK enjoys the lowest reciprocal tariffs globally, and under any scenario we expect our privileged trading position with the US to continue. We will work with the Administration to understand how the ruling will affect tariffs for the UK and the rest of the world."
After today's judgment, the pan-European Stoxx 600 increased by 0.84 hours in the immediate aftermath. Companies in the US have already begun suing the Trump administration to recoup some of the money they have lost from tariffs.
Last November, retail giant Costco became the largest importer to request a refund after two lower courts already ruled that President Trump had exceeded his authority.
Donald Trump tariffs declared illegal by US Supreme CourtSpeaking to the BBC, Seve Becker, head of law firm Pillsbury's international trade practice, noted it will be down to the Court of International Trade to address the implementation of the court's ruling.
He shared: "I think companies can be fairly confident that they'll get their money back eventually. But how long it will take really is up to the Government. There certainly will be a high volume and a lot of work involved.
However, Mr Becker highlighted that the Trump administration will likely implement a contingency plan to impose tariffs through other legal avenues.
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