A U.S. trade court ruling that invalidated most of former President Donald Trump’s tariffs and deemed he had exceeded his legal authority brought a mix of relief and lingering uncertainty to global financial markets on Thursday.

The verdict, which complicates ongoing trade talks, drew restrained responses from key U.S. trading partners. Both Germany and the European Commission declined to comment, citing the ongoing legal process.

“We ask for your understanding that we cannot comment on legal proceedings in the U.S., as they are still ongoing,” stated a spokesperson from Germany’s economy ministry. “We continue to hope for a mutually beneficial resolution between the EU Commission and the U.S. government.”

Markets responded positively in some sectors. Technology firms, banks, luxury goods companies, and auto manufacturers — all of which had previously been hit by tariff-related disruptions — saw gains. The U.S. dollar also strengthened, rising 0.2% against the yen and 0.3% against the Swiss franc, as safe-haven assets weakened. Meanwhile, Wall Street index futures rose by over 1.5%.

The trade court’s decision represents a significant blow to Trump’s tariff-based approach to trade negotiations. Although the administration announced plans to appeal, analysts cautioned that investor sentiment may remain guarded until the legal process plays out.

After an adverse market reaction to Trump’s major tariff announcement on April 2, the administration paused most import duties for 90 days and aimed to pursue bilateral trade deals. However, aside from a recent agreement with the UK, new deals have been slow to materialize. Analysts suggest the court ruling may further deter countries like Japan from entering into agreements too hastily.

The court’s intervention could offer relief to critics of Trump’s tariffs and traders who thrive on market swings. “Assuming the appeal doesn’t succeed in the near term, the key benefit is time to prepare and a limitation on tariff scope — which currently cannot exceed 15%,” said George Lagarias, chief economist at Forvis Mazars.

Trade Turmoil

Trump’s trade war has disrupted industries ranging from luxury fashion and footwear to consumer appliances and automobiles. Companies have struggled with rising raw material costs, broken supply chains, and revised business strategies.

Major corporations such as Diageo, General Motors, and Ford have already withdrawn their annual forecasts. International firms like Honda, Campari, Roche, and Novartis are considering shifting or expanding operations in the U.S. to offset tariff impacts.

As markets processed this latest development, export-heavy European sectors, particularly autos and luxury goods, saw notable gains. The STOXX 600 index rose 0.4%, while France’s CAC 40 — weighted heavily toward luxury and banking stocks — climbed 0.8%.

Investor sentiment was further buoyed by strong earnings from Nvidia, an AI sector leader, reported late Wednesday.

Meanwhile, spot gold fell for a fourth consecutive day, and U.S. Treasury yields rose — a sign of investors pivoting away from safe-haven assets.

Still, analysts warned that the recent rally in stocks could be fleeting. “I think we’re in a period of heightened volatility — more market spikes are likely,” said Kevin Barker, global head of active equities at UBS Asset Management. “But volatility is the friend of the active investor.”

Russia has deployed over 50,000 troops — including some of its elite units — near Ukraine’s northeastern Sumy region, President Volodymyr Zelenskiy said, though he emphasized that Kyiv has taken steps to block a full-scale assault.

This military buildup suggests Moscow may be preparing for a summer offensive, as Ukraine awaits a memorandum from Russia outlining its conditions for resuming ceasefire negotiations.

Sumy lies opposite Russia’s Kursk region, where Ukrainian forces previously held territory for several months before being largely driven out last month. Zelenskiy noted Ukraine still maintains a limited presence there.

“Their most powerful units are currently stationed on the Kursk front,” Zelenskiy told reporters on Tuesday. “Their goal is to expel our forces from that area and initiate offensive operations toward the Sumy region.”

President Putin has previously stated that Russia seeks a “buffer zone” along its border with Ukraine. Zelenskiy believes this could mean Russia aims to seize a strip of Ukrainian land extending approximately 10 kilometers inward.

In recent weeks, Russian forces have captured at least four border villages in the region and have been gradually advancing along parts of the eastern front near Kostiantynivka. However, Zelenskiy reported that Ukrainian forces recently managed to push Russian troops back by 4 kilometers in that area over a two-day period.

Zelenskiy reaffirmed Ukraine’s readiness to continue peace negotiations in any format. While the next round is expected to occur at a technical level, he expressed openness to a three-way summit involving U.S. President Donald Trump and Russian President Vladimir Putin.

He also stressed the importance of continued U.S. involvement in the peace process, warning against Washington’s potential withdrawal if talks stagnate.

Potential Negotiation Venues

After a recent prisoner exchange — with each side releasing 1,000 captives following a meeting in Istanbul — hopes for a ceasefire remain unfulfilled. Zelenskiy identified Turkey, the Vatican, and Switzerland as the most viable venues for further talks, with Malta and several unnamed African nations also expressing interest.

However, Zelenskiy dismissed Russia’s suggestion to hold negotiations in Belarus, citing its role as a staging ground for Russia’s 2022 invasion, and called the idea unserious.

Looking ahead, he confirmed his participation in the upcoming G7 summit, following an invitation from Canadian Prime Minister Mark Carney, whose country currently holds the rotating G7 presidency. Zelenskiy also expects to attend the next European Union summit.

On Ukraine’s defense industry, Zelenskiy said the country needs $30 billion this year to fully support the capabilities of its rapidly growing domestic arms sector.