US Supreme Court tariff decision highlights: SC skips verdict on Trump's tariffs again

The US Supreme Court is unlikely to give its verdict on Trump's tariffs any time soon.

SCOTUS is set to enter a four-week recess, and under its usual schedule for issuing opinions, the earliest possible date for a ruling on the tariff case is February 20, Bloomberg reported.

Stock futures saw a slight upward movement on Tuesday night after major averages in the US clocked their worst day in three months.

The futures related to the Dow Jones Industrial Average ticked upwards by 85 points, or nearly 0.2%. Meanwhile, S&P 500 futures advanced around 0.2% as well, and Nasdaq 100 futures climbed 0.1%.

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Amid escalating tensions with the US over President Donald Trump's ambitions for Greenland, the European Parliament will soon announce the suspension of the approval of the US trade deal agreed in July.

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US Supreme Court tariff decision LIVE: Trump, on Tuesday, said the ‘Board of Peace’ “might” replace the UN – which he labelled as “unhelpful". Earlier, he threatened to slap 200% tariffs on French wines and Champagne following Macron's likely refusal to serve on the board aimed at resolving global conflicts.

US Supreme Court tariff decision LIVE: Amid mounting pushback from US allies against tariffs over Greenland, Donald Trump brushed off questions about how far he would go to acquire the island, telling a reporter, “you’ll find out.”

US Supreme Court tariff decision LIVE: Admitting that an adverse ruling against the tariffs could carry sweeping financial consequences, Trump, during his address at the White House briefing, said he ‘doesn’t know what the Supreme Court is going to do'. Read here

US Supreme Court tariff decision LIVE: The US Supreme Court is set to enter a four-week recess, and under its usual schedule for issuing opinions, the next possible date for a ruling on the tariff case is February 20, Bloomberg reported.

US Supreme Court tariff decision LIVE: The dollar was set for its largest daily fall in over a month on Tuesday, after White House threats to Europe over the future of Greenland triggered a broad selloff across US stocks and government bonds, and drove the euro and the pound higher.

US Supreme Court tariff decision LIVE: Donald Trump's escalating tensions with European leaders over Greenland led to a drop in S&P 500, which fell over 1%, marking its largest morning decline since April. Read here

US Supreme Court tariff decision LIVE: During his address at the White House, Trump acknowledged the uncertainty over the outcome of the US Supreme Court's ruling on his administration's sweeping tariff regime. “We've taken hundreds of billions of dollars, and if we lose that case it’s possible we’ll have to do the best we can in paying it back,” BBC quoted Trump as saying.

Novartis CEO Vas Narasimhan told CNBC on Tuesday that the company’s agreement with the US government, along with its expanding domestic manufacturing footprint, is expected to protect the drugmaker from potential tariffs.

“We expect to be in a position by middle of this year where we are not really exposed to tariffs, because we're able to produce in the U.S. for the U.S.,” Narasimhan said, according to Reuters.

He added that the company announced $23 billion in manufacturing investments last year and is actively advancing these projects to further minimise tariff exposure. The Swiss drugmaker also has an agreement with the US government that could exempt it from tariffs, Narasimhan said, adding that the company is “future-proofed” if its products are subject to levies.

For investors, the stock market’s most turbulent periods this year coincided with major developments in Trump’s tariffs. The S&P 500, tracking the largest US public companies, experienced its biggest daily and weekly swings in April, along with the largest monthly losses in March and gains in May, as per AP.

President Trump’s 2025 tariffs have targeted nearly every country, including America’s top trading partners, but they have most heavily affected trade with China, as per AP. Once the largest source of US imports, China has fallen to third place behind Canada and Mexico. US tariffs on Chinese goods now total 47.5%, according to calculations by Chad Bown of the Peterson Institute for International Economics.

According to Yale Budget Lab data, the US effective tariff rate peaked in April 2025 but remains well above levels seen at the start of the year, reported AP. By November, before final adjustments in consumption, the effective tariff rate stood at nearly 17% — seven times higher than January’s average and the highest level recorded since 1935.

US Treasury Secretary Scott Bessent said he expects the Supreme Court to uphold the IEEPA-based tariffs. However, if the court strikes them down, he noted in an interview that the administration could turn to other tariff authorities, including Section 122 of the Trade Act of 1974, which permits broad 15% tariffs for 150 days to address trade imbalances. Trump could also invoke Section 338 of the Tariff Act of 1930, allowing tariffs up to 50% on countries that discriminate against US commerce.

“You should assume that they're here to stay,” Bessent said regarding Trump’s tariffs, as per Reuters.

For nations that negotiated tariff-reducing trade deals with the administration, he added, “you should honor your agreement. Those of you who got a good deal should stick with it.”

“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” President Trump said when announcing broad reciprocal tariffs in April under the law.

“Reciprocal — that means they do to us and we do it to them,” he added, as per Reuters.

Feb 1, 2025 – Trump orders 25% tariffs on imports from Mexico and Canada and 10% on goods from China, demanding the three countries curb fentanyl and illegal immigration into the US

Feb 10, 2025 – Tariffs on steel and aluminum imports raised to a flat 25%.

Mar 3, 2025 – 25% tariffs on goods from Mexico and Canada take effect from March 4; tariffs on all Chinese imports doubled to 20%.

Mar 26, 2025 – Trump announces a 25% tariff on imported cars and light trucks.

Apr 2, 2025 – Global tariffs unveiled with a 10% baseline on all imports, higher for select countries.

Apr 9, 2025 – Most country-specific tariffs paused; 10% blanket duty remains. Trump raises Chinese tariffs to 125%, totaling 145% with prior duties.

May 9, 2025 – Limited US-UK trade deal announced; 10% tariffs on British imports remain.

May 12, 2025 – US and China agree to a 90-day tariff reduction: US cuts Chinese tariffs to 30%, China lowers duties on US goods to 10%.

May 23, 2025 – Trump warns Apple of a 25% tariff on phones manufactured outside the U.S.

May 29, 2025 – Federal appeals court temporarily reinstates sweeping Trump tariffs.

Jun 3, 2025 – Executive proclamation increases steel and aluminum tariffs to 50%.

Jul 3, 2025 – 20% tariff announced on many imports from Vietnam; trans-shipments face 40% levy.

Jul 7, 2025 – Higher duties scheduled to kick in Aug 1, ranging from 25% to 40% for 14 countries.

Jul 15, 2025 – US-Indonesia framework deal reduces threatened tariffs to 19% from 32%.

Jul 22, 2025 – US-Japan trade deal lowers auto import tariffs to 15%.

Jul 30, 2025 – US-South Korea agreement reduces planned levies to 15%.

Jul 31, 2025 – Executive order imposes 10–41% tariffs on 69 trading partners; Canadian tariffs increased.

Aug 6, 2025 – Additional 25% tariff imposed on Indian goods over Russian oil imports.

Aug 7, 2025 – Higher tariffs kick in for dozens of countries, including Switzerland, Brazil and India.

Aug 11, 2025 – US extends tariff truce with China for 90 days, delaying three-digit duties until Nov 10.

Aug 21, 2025 – US-EU framework trade deal sets duties at 15% on most imports.

Sep 30, 2025 – Duties imposed: 10% on timber/lumber, 25% on kitchen cabinets, bathroom vanities, and upholstered furniture.

Jan 14, 2026 – Trump imposes a 25% tariff on select AI chips, including Nvidia H200 AI processor and a comparable AMD semiconductor.

(With inputs from Reuters)

President Trump last week levied a 25% tariff on specific AI semiconductors, including the Nvidia H200 AI processor and a comparable chip from AMD, according to Reuters.

Chinese shipments to the US declined after President Donald Trump returned to office early last year and began increasing tariffs, as per AP. However, that drop was offset by stronger exports to other global markets. Rising imports of Chinese goods have prompted some governments to respond by protecting domestic industries, including raising import duties in certain cases.

Americans’ confidence in the economy weakened in December as worries over high prices and the effects of President Donald Trump’s broad tariffs grew, as per AP.

The Conference Board reported Tuesday that its consumer confidence index dropped 3.8 points to 89.1 in December, marking the fifth consecutive monthly decline and nearing the 85.7 level recorded in April, when Trump first implemented import taxes on US trading partners. November’s figure was revised upward to 92.9.

The court is preparing to begin a four-week recess, and under its usual procedures for releasing opinions, the next likely day for a tariff decision is 20 February, according to Bloomberg.

US Treasuries slid alongside a broader global bond selloff and stocks eased after President Donald Trump’s tariff threats linked to Greenland reignited trade tensions, denting confidence that had been supported by an AI-driven rally.

Treasury prices dropped when trading resumed following Monday’s US holiday, as worries grew that the administration’s tough posture toward international partners could weaken demand for American assets. Longer-dated bonds bore the brunt of the move, with the 30-year yield rising four basis points to 4.88%, while a dollar index measure slipped to a two-week low.

The tariffs case tests the limits of presidential authority under the International Emergency Economic Powers Act (IEEPA), a 1977 law meant for national emergencies.

The tariffs, which Trump imposed by declaring a national emergency over persistent trade deficits, cover imports from nearly every US trading partner. He also invoked the same law to impose duties on China, Canada, and Mexico, citing fentanyl trafficking and the flow of illegal drugs into the country.

Novartis CEO Vas Narasimhan said on CNBC on Tuesday that the company’s agreement with the US government, along with its growing manufacturing presence in the country, should shield the drugmaker from any potential tariffs.

According to Narasimhan, Novartis expects to reach a point by the middle of the year where it is largely insulated from tariff risks, as it will be able to manufacture medicines in the US specifically for the US market. “We expect to be in a position by middle of this year where we are not really exposed to tariffs, because we're able to produce in the U.S. for the U.S.,” he said.

He also pointed out that the company announced $23 billion in manufacturing investments last year and is steadily advancing those projects to further limit its exposure to tariffs.

China said its economy grew at an annual rate of 5% in 2025, supported by robust export performance despite tariffs imposed by the Trump administration, according to an AP report.

President Donald Trump’s tariffs on imported goods are borne largely by American importers, their domestic customers and, ultimately, US consumers, according to a study by a German think tank.

In a report released Monday, the Kiel Institute for the World Economy said that “foreign exporters did not meaningfully reduce their prices in response to US tariff increases,” adding that “the $200 billion surge in customs revenue represents $200 billion extracted from American businesses and households".

The study concluded that foreign firms shoulder only around 4% of the overall tariff burden, while about 96% is passed on almost entirely to US buyers who pay the duties and must either absorb the costs or raise prices. Manufacturers and retailers then face the choice of passing higher costs on to consumers or accepting reduced profit margins.

As a result, the researchers argued that “the tariff functions not as a tax on foreign producers, but as a consumption tax on Americans,” the report’s authors, Julian Hinz, Aaron Lohmann, Hendrik Mahlkow and Anna Vorwig, wrote.

US stock futures were under pressure, with the S&P 500 down 1% as of 11:48 am Eastern Time, as per AP. The Dow Jones Industrial Average futures slipped 0.8%, while Nasdaq composite futures fell 1.2%. U.S. equity markets remained closed on Monday due to the Martin Luther King Jr. Day holiday.

Countries hit by President Donald Trump’s extensive use of tariffs should stay calm if the US Supreme Court rules against him and forces a rethink of a key pillar of his negotiating strategy, a trade expert has said.

Speaking on Bloomberg TV on Wednesday, Sam Lowe, a partner at London-based Flint Global who leads its trade and market access practice, argued that governments would be wise to avoid overreacting. “In a sense you should just continue as normal,” Lowe said, adding that he does not expect many countries to respond with open criticism or loud protests.

Lower courts have already determined that the president exceeded his authority last year by introducing so-called “reciprocal” tariffs on imports from many of the United States’ trading partners. Those courts backed a lawsuit filed by businesses affected by the tariffs across 12 US states, concluding that Trump lacked the legal authority to rely on a 1977 statute, intended for emergency situations, to impose country-specific duties.

The administration has challenged those decisions and taken the case to the Supreme Court.

Jamieson Greer, the United States Trade Representative, told The New York Times that if the Supreme Court strikes down the tariffs, the Trump administration intends to replace them almost immediately with other levies. He expressed confidence, however, that the court would rule in the administration’s favor and emphasised that tariffs will continue to be a key part of the president’s trade policy.

“The reality is the president is going to have tariffs as part of his trade policy going forward,” Greer said.

“We're getting rich because of tariffs, by the way. I hope everyone understands that. They hate to report. We’ll have over $650 billion poured into our country, or coming in shortly, because of tariffs," Trump stated on Tuesday at a retreat with House Republicans.

The effects of US tariffs on India’s domestic auto components industry are expected to become more apparent in the second half of the current financial year, with uncertainty looming over new contract awards, industry body ACMA said on Wednesday.

“The impact of Trump tariffs would be felt more in the second half than in the first half. Because, they kicked in the month of September,” Automotive Component Manufacturers Association (ACMA) Director General Vinnie Mehta told reporters here, as per PTI.

More than 1,000 companies, including Costco Wholesale Corp. and Goodyear Tire & Rubber Co., have joined legal challenges against President Donald Trump’s tariffs. According to Bloomberg, the surge in lawsuits followed the US Supreme Court signaling skepticism during a November 5 hearing over the administration’s reliance on the 1977 International Emergency Economic Powers Act.

If the court ultimately strikes down the tariffs, these companies are expected to seek refunds for duties they have already paid.

More than 1,000 companies, including Costco Wholesale Corp. and Goodyear Tire & Rubber Co., have joined legal challenges against President Donald Trump’s tariffs. According to Bloomberg, the surge in lawsuits followed the US Supreme Court signaling skepticism during a November 5 hearing over the administration’s reliance on the 1977 International Emergency Economic Powers Act.

If the court ultimately strikes down the tariffs, these companies are expected to seek refunds for duties they have already paid.

US authorities collected more than $200 billion in tariff revenue between January 20 and December 15, 2025.

US Customs and Border Protection said the collections resulted from over 40 executive orders issued by President Donald Trump’s administration.

US Customs authorities have collected IEEPA-related tariffs from more than 301,000 importers, according to a court filing cited by Bloomberg.

The tariffs were applied to roughly 34 million shipments entering the United States.

The data reflects collections as of December 10.

The US Supreme Court issued three rulings but did not announce a decision on the case challenging the legality of President Donald Trump’s global tariffs on January 14.

A few days ago, Trump posted on Truth Social, “The actual numbers that we would have to pay back if, for any reason, the Supreme Court were to rule against the United States of America on Tariffs, would be many Hundreds of Billions of Dollars, and that doesn’t include the amount of ‘payback’ that Countries and Companies would require for the Investments they are making on building Plants, Factories, and Equipment, for the purpose of being able to avoid the payment of Tariffs. When these Investments are added, we are talking about Trillions of Dollars! It would be a complete mess, and almost impossible for our Country to pay. (sic)”

He added, “Remember, when America shines brightly, the World shines brightly. In other words, if the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!”

The upcoming US Supreme Court decision on Trump’s tariffs could affect the Indian stock market. Experts caution, however, that any positive effect may be limited, since tariffs continue to be a key part of Trump’s policy strategy.

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Bank of England rate-setter Alan Taylor mentioned there are signs of “substantial trade divergence” that is lowering UK inflation, as he predicted interest rates will fall to neutral levels sooner rather than later.

Taylor said inflation is on course to fall to the central bank’s 2% target in mid-2026 and remain there sustainably because of cooling wage growth

According to US customs sata, US authorities collected over $200 billion in tariffs between January 20 and December 15, 2025. In an official statement, US Customs and Border Protection credited the revenue to “more than 40 executive orders put in place by President Donald Trump’s Administration".

US Trade Representative Jamieson Greer told the New York Times on Monday that the Trump administration would implement new tariffs almost immediately if the Supreme Court invalidates the sweeping global tariffs the president imposed under an emergency law.

External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio last week reviewed the bilateral economic relationship between India and the United States.

In a post on X, Jaishankar said the two sides had a “good conversation” covering trade, critical minerals, nuclear cooperation, and defence. The talks come amid a pending trade agreement and ongoing concerns over the 50% tariffs imposed last year by the Trump administration on India’s purchase of Russian oil.

European shares fell to their lowest level in nearly two weeks on Tuesday, as growing concerns over US President Donald Trump’s tariff threat on Greenland undermined optimism from earlier in the month.

The pan-European STOXX 600 closed 0.7% lower, marking its largest two-day decline in two months. France’s CAC 40 fell 0.6% to a one-month low, while Germany’s DAX dropped 1%.

Trump’s warning to impose escalating tariffs from February 1 on eight European countries, unless the US is allowed to purchase Greenland, sparked fears of a renewed trade war.

Mark Malek, chief investment officer at Siebert Financial, said Friday’s stock gains were not unexpected, according to Bloomberg.

“This morning many folks became hyper focused on the SCOTUS ruling and perhaps quickly dismissed the jobs data with a ‘meh,’” he said. “Once we learned that there would be no ruling, many may have circled back to the employment numbers and viewed them as being slightly positive. Not bad, not good either, but slightly positive.”

Malek added that any relief rally is likely to be short-lived once investors shift their attention back to the deficit.

The S&P 500 climbed 0.6% on Friday to a record high, while the Nasdaq 100 surged 1%. Stocks had initially dipped after the Supreme Court did not issue a ruling on the fate of President Donald Trump’s import tariffs, with consumer-focused companies like Mattel Inc. and Deckers Outdoor Corp. lagging behind, according to Bloomberg. Small-cap and blue-chip indexes also reached new highs, indicating that the rally extended beyond just major tech stocks.

Stocks dropped in morning trading on Wall Street Tuesday after President Donald Trump threatened to impose new tariffs on eight NATO members amid rising tensions over his efforts to assert American control over Greenland, according to AP.

The S&P 500 fell 1.2%, retreating further from the record it reached early last week. Monday was a holiday in the U.S. for Martin Luther King Jr. Day, marking the first opportunity for markets to respond to Trump’s escalation.

The Dow Jones Industrial Average fell 536 points, or 1.1%, by 10:56 am Eastern, while the Nasdaq composite dropped 1.5%.

US Supreme Court tariff decision LIVE: Trump’s sweeping tariff regime – with the sharpest impact felt in US trade with China. The nation, once the largest source of American imports now ranks third, behind Canada and Mexico. Tariffs on Chinese goods now average about 47.5%, according to calculations by Chad Bown of the Peterson Institute for International Economics.

US Supreme Court tariff decision LIVE: The court is preparing to begin a four-week recess, and under its usual procedures for releasing opinions, the next likely day for a tariff decision is 20 February. Read here

US Supreme Court tariff decision LIVE: European Union’s Ursula von der Leyen said on Tuesday that President Donald Trump’s threats of new tariffs over Greenland are “a mistake especially between long-standing allies,”after he agreed last year not to impose more tariffs on EU countries.