U.S.-listed Chinese stocks led by Alibaba Group Holding (NYSE:BABA), PDD Holdings Inc (NASDAQ:PDD), and Baidu, Inc (NASDAQ:BIDU) gained on Thursday after a federal court invalidated global tariffs enacted by President Donald Trump under the International Emergency Economic Powers Act on Wednesday.
A three-judge panel, with appointees from the Reagan, Obama and Trump eras, ruled that the IEEPA doesn’t give the president unlimited power to impose tariffs.
Reportedly, the Trump administration filed an appeal against the ruling in minutes.
Also Read: Alibaba Eyes Growth In Other Markets As US Ties Strained, Says Chairman
The Chinese electric vehicle companies, including NIO Inc (NYSE: NIO) and XPeng Inc (NYSE: XPEV), also noted strong upward momentum.
On May 12, Beijing and Washington agreed to lower tariffs on each other’s products, temporarily offering relief to the stock market. The deal reduced U.S. levies of 145% on most Chinese imports to 30%, while China’s 125% duties on U.S. goods will drop to 10% for 90 days.
In April, President Trump hinted at a significant reduction in tariff rates.
During an investor summit, Treasury Secretary Scott Bessent acknowledged the impracticability and mutual challenges of a tariff war with China.
U.S. chip designer Nvidia Corp (NASDAQ:NVDA) reported first-quarter results on Wednesday. It faced an export ban on H20 products to China on April 9.
The company said it incurred a $4.5 billion charge in the first quarter related to H20 excess inventory and purchase obligations.
Price Actions: BABA stock is up 0.50%, and PDD is up 1.20% at the last check Thursday.
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