The ruling says Trump exceeded authority in imposing sweeping tariffs. Plus, Elon Musk confirms government exit

Good morning.

A federal trade court has ruled Donald Trump’s sweeping tariffs regime illegal, a dramatic twist that could block the president’s controversial global trade policy.

What was the ruling? Tariffs typically need to be approved by Congress but Trump has so far bypassed that requirement by claiming that the country’s trade deficits amounted to a national emergency. The court’s ruling stated that Trump’s tariff orders “exceed any authority granted to the president … to regulate importation by means of tariffs”.

How are markets reacting? Global markets cheered the ruling, with the US dollar rallying along with indexes in France, Germany, Japan, and futures for the US S&P 500, Dow Jones and Nasdaq indexes rising.

What’s next? The Trump administration has already filed to appeal. White House officials attacked the court, calling it “unelected”.