This morning, news broke that US President Trump had hit a major roadblock. 

Specifically, as reported by Bloomberg, the US Court of International Trade blocked most of President Donald Trump's global tariffs. The three-judge panel said they were illegally imposed under an emergency law.

The verdict permanently blocks the tariffs unless an appeals court allows them to be reinstated pending litigation. The order applies to Trump's 10% baseline tariff, elevated rates on China, and his fentanyl-related tariffs on China, Canada, and Mexico. Certain tariffs, which we enacted under different legislation, remain in place. This includes the tariffs on steel, aluminium, and automobiles.

For now, a substantial part of Trump's economic agenda remains up in the air. The Trump administration's Department of Justice has already appealed the decision. This may take a while to play out. However, the stock market appeared to appreciate the news. The S&P/ASX 200 Index (ASX: XJO) opened 0.4% higher this morning. Certain stocks that were likely to be materially impacted by Trump's tariffs are trading higher today.

Lovisa Holdings Ltd (ASX: LOV)

Fast fashion jewellery retailer Lovisa is among the most heavily affected by Trump's tariffs. 

Lovisa's products are primarily sourced from China, making it vulnerable to any tariffs on goods originating from that country. On 'Liberation Day', US President Donald Trump set China's tariffs at 54%, slapping an extra 34% tariff on the existing 20% levy. That day, Lovisa's shares sank 6% on the news. 

Since then, the US and China have engaged in a trade war, with the US' tariff on China climbing as high as 145%. However, on 12 May, the two nations agreed to a 90-day reciprocal tariff pause. 

Lovisa shares have been among the best performers since Liberation Day. Its price has rallied 41% since 7 April. With Lovisa's share price up another 2% today, the market appears to be reacting positively to the US trade court's ruling. 

Breville Group Ltd (ASX: BRG)

Breville Group is another ASX 200 company that is heavily exposed to tariffs. The company manufactures 90% of its products (by value) in China and sells 45% of its products into the US.

Since 7 April, Breville's share price has climbed 15%. Today, it is up nearly 1%, suggesting Breville investors may also have a positive view on the US trade court's ruling.

Ansell Ltd (ASX: ANN)

Finally, ASX 200 medical supplies company Ansell is also heavily subject to tariffs. In FY24, Ansell generated 42% of its revenue in the US. It manufactures its products in nine countries, the largest being Malaysia and Sri Lanka.In an April research note, Macquarie described Ansell as the "most exposed" to tariffs in its coverage universe. In that note, Macquarie said it expected Ansell to pass on around 75% of the tariff costs to customers by raising prices on its goods sold.Since 7 April, Ansell has rebounded 10%. It is trading 0.6% higher again today, suggesting Ansell investors could be reacting favourably to the court's decision.