Supreme Court Tariff Ruling Shakes Global Markets: What’s Next?

The Supreme Court's decision against Trump's tariffs has sparked reactions globally. China and South Korea are assessing impacts while financial markets react. Trump plans a new tariff under Section 122, affecting global trade dynamics. Uncertainty looms as partners await further US actions.

The recent Supreme Court ruling against tariffs imposed by US President Donald Trump is causing ripples across international trade waters, leaving nations such as China and South Korea vigilant for Washington's next move. Financial markets, surprisingly, have maintained relative stability amidst the unfolding situation.

The ruling, unveiled on Friday, threatens to upend hard-won deals orchestrated since Trump announced a slew of levies in April 2025. China's Commerce Ministry expressed its disagreement, urging an end to the 'unilateral tariffs' attributed to Trump's interpretation of the International Emergency Economic Powers Act, stressing that such measures undermine global trade norms and US laws.

In response, Trump has proposed a 15% global tariff under Section 122 of the 1974 Trade Act, prompting mixed reactions internationally. While some Asian nations like China may experience relief, allies such as Japan and the UK face higher duties. The ripple effects of this tariff volte-face are reflected in market indexes and geopolitical dialogues, with South Korea pledging cooperative negotiations to shield its economy.

(With inputs from agencies.)