Supreme Court Limits Presidential Trade Authority as 9% of Tariff Hikes Ruled Illegal

The US Supreme Court has issued a landmark ruling that significantly curtails the President's executive authority over international trade policy. According to data from Capital Economics, while the effective tariff rate surged from 2% to 14% during the recent administration, judicial reviews have now determined that 9% of these increases were legally unauthorized. This decision effectively undermines the President's ability to unilaterally negotiate and enforce trade deals using tariffs as a primary lever. Analysts suggest that while the removal of illegal tariffs may reduce costs for domestic importers, it introduces a new layer of policy uncertainty. Furthermore, the ruling weakens the US bargaining position in global trade negotiations by restricting executive flexibility. Consequently, markets are bracing for potential volatility in the USD, the SPY index, and major trade-sensitive currency pairs.