Tariff Deadlock on Wall Street: Markets React to Supreme Court Ruling

Legal Obstacles and Market Reaction in Trade Wars The legal clash between U.S.
President Donald Trump’s decision to raise global import tariffs to 15% and the U.S.
Supreme Court’s move to halt the action has escalated uncertainty on Wall Street.
As investors moved cautiously due to trade policy ambiguity, stock markets experienced volatility, while the search for safe havens pushed gold and bond prices higher.
In the cryptocurrency market, Bitcoin struggled to stabilize around the $66,000 mark after dipping below $65,000, ending the day in the red.
In the bond market, investors shifted their expectations for the Federal Reserve's next interest rate cut to September.
Legal Battle Over Tariff Authority At the center of the developments is the White House's announcement of a 15% general tariff on all import items.
The U.S.
Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA), which Trump cited as the basis for these tariffs, does not grant the president such authority.
However, the Trump administration argues it has the power to keep the tariffs in effect for 150 days under Section 122 of the Trade Act of 1974.
Experts predict this legal tug-of-war will be a primary distraction for markets throughout the remainder of the year.
Shift to Safe Havens and Global Warnings The European Commission has requested clarity from Washington, warning that the current situation could damage transatlantic trade relations.
Amid the confusion over trade policies, spot gold prices rose by more than 1%, while gold futures gained 2%.
10-year Treasury yield settled at 4.07%, and the 2-year yield at 3.48%.
Analysts suggest that this legal dispute over trade policy could continue to weigh on markets until 2026.