Supreme Court Strikes Down Trump's Tariffs, Shifting Global Trade Dynamics

The U.S. Supreme Court has nullified Donald Trump's extensive tariffs, ruling that he exceeded his authority under the International Emergency Economic Powers Act. The ruling has significant effects on the global economy, causing market fluctuations and future uncertainties with new tariffs possibly looming under different legal justifications.

The U.S. Supreme Court delivered a significant rebuke to former President Donald Trump by striking down his extensive tariffs, ruling 6-3 that he exceeded his authority under the International Emergency Economic Powers Act (IEEPA). The ruling has major implications for the global economy.

Chief Justice John Roberts, authoring the majority opinion, stated that the IEEPA did not grant Trump the power to impose such tariffs. This decision has led to increased market volatility, with a notable rise in U.S. stock indexes, while the dollar weakened, and Treasury yields climbed.

Critics argue that the decision may lead to uncertainties as the administration explores alternative legal avenues. Meanwhile, Justice Brett Kavanaugh and fellow conservatives dissented, arguing that tariffs remain a valid regulatory tool, reflecting deep divisions on presidential powers.

(With inputs from agencies.)