US Supreme Court Strikes Down Trump’s Global Tariff Program

The US Supreme Court has invalidated the legal framework behind President Trump’s global tariff program, ruling that emergency powers under the IEEPA cannot be used for broad import levies. This landmark decision effectively erases the legal foundation for a tariff structure that has already collected over $175 billion in duties. In response to the ruling, the Trump administration pivoted by invoking Section 122 of the Trade Act of 1974 to maintain its trade policy. This alternative legal path imposes stricter limitations, capping temporary tariffs at 15% for a maximum duration of 150 days. While the lower tariff cap may provide some relief to markets, the sudden legal shift has introduced significant volatility across major asset classes. Investors are now closely monitoring the impact on global trade dynamics and the potential for further legislative or executive challenges.