Developing: Supreme Court Strikes Down Trump Tariffs — New 15% Global Levy Throws Trade Deals Into Chaos
The US Supreme Court on Friday delivered a landmark ruling that struck down the bulk of President Donald Trump's sweeping global tariffs, declaring that the International Emergency Economic Powers Act (IEEPA) did not authorise the president to impose the levies. The decision invalidated tariffs announced on "Liberation Day" last April that had reshaped global trade flows and prompted months of negotiations between Washington and its trading partners. Trump responded within hours by announcing a new 10% global tariff under a different law — Section 122 of the 1974 Trade Act — which he quickly raised to 15% on Saturday. The new duties, set to take effect on Tuesday, February 24, have thrown previously negotiated trade deals into disarray. The S&P 500 fell approximately 1% on Monday as markets digested the uncertainty, with the SPDR S&P 500 ETF Trust (SPY) closing at $682.41, down $7.02 on the day. Countries from the European Union to India are now re-evaluating their trade agreements with the United States, while the UK and other allies that had negotiated favourable 10% rates find themselves potentially worse off under the new blanket 15% levy.