Pound Sterling Rises as US Court Rejects Trump’s Tariff Push

Pound Sterling Rises as US Court Rejects Trump’s Tariff Push

The British Pound (GBP) recovered sharply against the US Dollar (USD) on Thursday, reaching around 1.3470 during the European session. This rebound follows a US federal court ruling that President Donald Trump’s 'Liberation Day' tariffs violated constitutional authority.

Court Ruling Triggers USD Pullback

The US Court of International Trade rejected Trump's use of the International Emergency Economic Powers Act (IEEPA), calling it an abuse of power. While the ruling targets broad tariff measures, sector-specific duties — including on autos, metals, and semiconductors — remain in place for now.

The court gave the administration 10 days to respond, though the White House has already filed an appeal.

Market Impact: GBP/USD Bounces, DXY Slips

As a result, the USD Index (DXY) pared gains, dropping from 100.50 to near 100.10, pulling back after earlier strength driven by safe-haven demand. This allowed GBP/USD to recover from its session low of 1.3415.

UK Outlook Brightens Slightly

Also lifting the Pound was a modest upward revision from the IMF for UK GDP growth, now projected at 1.2% for the year. Although still subdued, the forecast adds relative optimism compared to economic uncertainty in the US.

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