🚨 SCOTUS Blocks Trump’s IEEPA Tariffs: Market Alert 🏛️
The US Supreme Court (6-3) has ruled that President Trump lacks the authority to impose tariffs under IEEPA, reserving taxing power for Congress. Here’s the breakdown:
📉 The Impact
$160B+ in Tariffs Invalidated: Projecting a $175B refund wave for affected businesses.
Market Reaction: Stocks surged (especially Small-Caps & Consumer stocks); the US Dollar weakened on fiscal concerns.
The Pivot: Trump has already announced a new 10% global tariff via Section 122 of the 1974 Trade Act.
💡 Trading Strategy
Bullish: Consumer Discretionary and Small-Cap equities as supply-chain costs drop.
Watch: High volatility in trade-sensitive sectors (Tech/Auto) as the legal battle shifts to Section 301/122.
Forex: Monitor DXY for further weakness following the $1.4T revenue loss projection.
⚠️ Risk: Uncertainty remains high as the administration moves to alternative legal authorities to maintain trade pressure.