After the US Supreme Court struck down tariffs imposed by the US President Donald Trump, Nasdaq, Dow Jones and S&P 500 quickly rose, recovering from a slow-paced start.
The US top court said that the President lacked the authority to impose tariffs. The S&P 500 and the Dow Jones Industrial Average both surged above 0.4% on Friday. The Nasdaq Composite rose around 0.6% at the time of writing this story.
On the other hand, the yields on benchmark US Treasuries increased, with that on 10-year notes up 2 basis points (bps) to 4.096%.
Donald Trump’s sweeping global tariffs have been struck down by the US Supreme Court, in a major blow to the president’s economic agenda
With a 6-3 majority, the Supreme Court ruled against Trump’s global tariff imposition. The top US court said Trump exceeded his authority when he imposed tariffs through a law reserved specifically for national emergencies. Further, it noted that the US President required congressional approval to impose taxes on imports
The court’s decision comes as a counter to Trump’s “Liberation Day” tariffs; however, it reportedly doesn’t apply to individual tariffs on specific countries or products.
Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce, said, “The Supreme Court’s decision is welcome news for businesses and consumers. Over the past year, the Chamber has been working with small and midsize businesses around the country that have seen significant cost increases and supply chain disruptions as a result of these tariffs. Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country and will help support stronger economic growth this year.”
Earlier today, the US GDP missed forecasts growing at 1.4% in the fourth quarter after rising 4.4% in the preceding period, as per the government’s estimate out on Friday.
“The Democrat Shutdown cost the U.S.A. at least two points in GDP. That’s why they are doing it, in mini form, again. No Shutdowns! Also, LOWER INTEREST RATES. “Two Late” Powell is the WORST!!! President DJT” President Trump reacted to the GDP data on Truth Social.