Chinese stocks with major U.S. export businesses rose in Hong Kong trade on Monday after the U.S. Supreme Court struck down a bulk of President Donald Trump’s trade tariffs.
The ruling, which eliminates a main legal pathway for Trump to enact his tariff plans, drummed up hopes for lower or even no more U.S. trade tariffs, although the latter appears unlikely.
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Exporters, of which a majority include electronic component makers, rose on this notion. Lenovo Group (HK:0992), a major electronics seller, added 1.5%, while BYD Co (HK:1211) and Techtronic Industries Co Ltd (HK:0669), which export electronic parts, rose between 3.5% and 4%.
Sportswear maker Li Ning Co Ltd (HK:2331) added 3.1%, while clothing manufacturer Shenzhou International Group Holdings Ltd (HK:2313) surged 4.2%.
Gains in exporters held the Hang Seng index rally nearly 3%.
The U.S. Supreme Court over the weekend ruled that Trump had overstepped his authority in declaring an economic emergency and imposing his trade tariffs. Trump responded by declaring a 15% universal tariff under a different legal framework.
Still, the president will need Congressional approval to maintain his tariffs beyond 150 days– a requirement that could herald a potential end to the levies.
China’s Commerce Ministry said on Monday it was gauging the implications of the Supreme Court ruling, and called for cooperation over confrontation.
