Trump boasts tariffs drove record market highs, urges Supreme Court to uphold his trade authority
Donald Trump linked record US stock market highs to his tariff policy and urged the Supreme Court to uphold his authority after lower courts ruled he exceeded presidential powers.
President Donald Trump credited recent record highs in US stock markets to his tariff policies, describing them as a key pillar of economic strength and national security. In a post on Truth Social, he urged supporters to “pray” that the United States Supreme Court upholds his authority to maintain the tariffs.
Why Trump is appealing to the Supreme Court
Trump’s appeal stems from a legal challenge to his sweeping tariff regime. Lower federal courts have ruled that many of the tariffs exceeded presidential authority under existing law, finding that the statute used by the administration does not explicitly empower a president to impose broad import duties — a power traditionally reserved for Congress under the US Constitution.
Lower court rulings
A federal court ruled that Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA), issuing a permanent injunction against enforcing the tariffs and stating the law does not grant “unlimited tariff authority.” The ruling was later upheld on appeal.
Trump’s administration has since asked the Supreme Court to decide whether emergency economic powers can be used to impose tariffs on imports from dozens of countries. The levies remain in effect while the appeal is pending.
Trump's tariff policy
After returning to the White House, Trump imposed a broad set of tariffs, including baseline duties on most imports and higher “reciprocal” tariffs targeting countries with large trade surpluses with the US. He has argued the measures are necessary to protect domestic industries, reduce trade deficits and strengthen national security.
Wall Street ends higher; Dow hits record as energy, financials rally
Wall Street closed higher on Monday (January 5), with the Dow Jones Industrial Average hitting an all-time high, lifted by strong gains in financial and energy stocks.
The Dow rose 1.23% to 48,977.18, while the S&P 500 gained 0.64% to 6,902.05 and the Nasdaq added 0.69% to 23,395.82. Trading was heavy, with 19.1 billion shares changing hands, well above the 20-session average of 15.9 billion.
Energy stocks surged after a US military move involving Venezuela raised expectations that American oil firms could gain access to the country’s vast reserves. The S&P 500 energy index jumped 2.7%, its highest level since March 2025, with Exxon Mobil and Chevron both climbing sharply.
Financial shares also led gains, with the S&P 500 financials index up 2.2%. Goldman Sachs and JPMorgan Chase rose more than 3% each, hitting record highs, as investors positioned ahead of quarterly earnings. Analysts expect 6.7% year-on-year earnings growth for S&P 500 financial companies in the December quarter.
Defense stocks advanced as well, pushing the S&P aerospace and defense index to a record high, while Tesla rose 3.1%, snapping a seven-day losing streak. Apple fell 1.4%, and Nvidia slipped 0.4%.