European stocks moved higher following a U.S. court ruling that blocked President Donald Trump’s reciprocal tariffs. According to Goldman Sachs, the Trump administration is likely to find a way around the court’s decision. The White House is expected to appeal a U.S. Court of International Trade ruling that struck down steep tariffs imposed by President Trump in April.

Goldman Sachs suggests that the administration may use executive power under Section 301 of the Trade Act of 1974 to reimpose tariffs, a strategy previously used on China during Trump’s first term. Goldman’s chief economist, Jan Hatzius, in a note to clients, mentioned, “This ruling represents a setback but not necessarily a change in the final outcome for most major U.S. trading partners.” Hatzius added that the administration might resort to Section 122 of the same Act, which allows imposing import tariffs of up to 15% for up to 150 days on countries with significant trade surpluses with the U.S.

The U.S. dollar index, which measures the greenback against a basket of major currencies, rose 0.2%. The euro and British pound were slightly lower against the dollar, while the Swiss franc — often considered a safe haven — dropped 0.3%.

European stocks rose in early trading as investors reacted to the U.S. court decision. The pan-European Stoxx 600 was up 0.4%, with tech, mining, and auto stocks leading gains. Today marks Ascension Day, a Christian holiday observed in countries including France, Belgium, Germany, Norway, the Netherlands, and Switzerland.

European stocks rise on tariff block

Despite some markets being closed, most major European markets remained open for trading. German tank parts maker Renk is looking to the struggling auto sector for new hires as it scales up operations amid rising geopolitical tensions and increased military spending.

Earlier this year, Germany enabled a steep increase in defense spending. Renk, known for its tank gear boxes, has seen its share price increase by over 300% this year, with its order book growing to 549 million euros ($622.3 million) in the first quarter. Stocks in the Asia-Pacific region rose, and U.S. stock futures moved higher as investors welcomed the U.S. court’s decision halting Trump’s tariff plans.

Futures for the German DAX index, FTSE 100, and France’s CAC 40 also saw gains. On Wednesday, the Federal Court of International Trade blocked the steep tariffs imposed by President Trump, which aimed to address persistent trade imbalances. This decision is a significant blow to Trump’s trade agenda and efforts to negotiate new trade deals.

As European financial markets prepared to open, stock futures indicated a positive start. Futures tied to the German DAX, FTSE 100, and France’s CAC 40 all showed gains, reflecting investor optimism following the tariff ruling.