Stocks close higher after mixed rulings on Trump’s tariffs

(NEW YORK) — Stocks closed higher on Thursday after a panel of federal judges blocked President Donald Trump from slapping some of his far-reaching tariffs on China and other major U.S. trading partners.

A federal appeals court moved to temporarily reinstate the tariffs on Thursday afternoon, however, leaving the ultimate fate of the policy uncertain.

The Dow Jones Industrial Average closed up 117 points, or 0.2%, while the S&P 500 increased 0.4%. The tech-heavy Nasdaq climbed 0.3%

The ruling from the U.S. Court of International Trade late Wednesday marked a major blow for Trump’s tariff policy, invalidating levies on dozens of countries unveiled in a Rose Garden ceremony that Trump had dubbed “Liberation Day.”

Less than a day later, an appeals court opted to revive the policy on administrative grounds, affording the judges additional time to weigh the case.

A set of tariffs focused on Mexico and Canada over their alleged role in the fentanyl trade would also fall victim to the U.S. Court of International Trade’s ruling, if it ends up being upheld. The decision would also invalidate a 10% tariff imposed on goods from nearly all countries.

The Trump administration appealed the ruling within minutes on Wednesday night.

The ruling centered on Trump’s unprecedented invocation of the International Economic Emergency Powers Act as a legal justification for tariffs.

The 1977 law allows the president to stop all transactions with a foreign adversary that poses a threat, including the use of tools like sanctions and trade embargoes. But the measure does not explicitly permit tariffs, putting Trump in untested legal territory.

The ruling Wednesday afforded the Trump administration as many as 10 days to halt the tariffs.

Even before the court’s decision, Trump had rolled back some of the levies at issue.

A trade agreement between the U.S. and China earlier this month slashed tit-for-tat tariffs between the world’s two largest economies and triggered a surge in the stock market. Within days, Wall Street firms softened their forecasts of a recession.

The U.S.-China accord came weeks after the White House paused the reciprocal tariffs. Trump eased duties on some goods from Mexico and Canada.

The ruling did not impact sector-specific tariffs used under separate legal statutes, including levies targeting autos, steel and aluminum.