The U.S. Supreme Court Rules Trump's Trade Tariff Policy Unlawful

BlockBeats News, February 20th, The US Supreme Court ruled by a 6-3 vote that Trump's trade tariff policy was illegal. The Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) did not authorize the president to impose tariffs. It upheld a lower court ruling by the US Federal Circuit Court of Appeals that deemed Trump's tariffs illegal. The Supreme Court also weighed on whether to allow the president to dismiss officials of independent federal agencies without cause and will hear arguments in April on the legality of Trump's termination of the birthright citizenship plan. While this ruling limits the president's ability to impose hefty tariffs under the IEEPA, it does not preclude the president from levying tariffs under other trade laws. Trump had previously invoked other laws to impose tariffs on imports of copper, steel, aluminum, and other products. However, the US Supreme Court did not rule on the issue of tariff refunds. Earlier analyses suggested that the ‘Unlawful Tariff Ruling’ would trigger a massive tariff refund (potentially up to $600 billion), which typically requires years of case-by-case litigation, resulting in a non-immediate cash flow impact.

Impacted by this news, European stocks strengthened, with the UK FTSE 100 index rising by 1.00% intraday. The Spain IBEX35 index rose by 1.00% intraday. The France CAC40 index touched 8500 points to the upside, rising by 1.31% intraday. The US Dollar Index (DXY) dropped by 20 points in the short term, hitting a low of 97.71.

According to Bitget market data, spot gold dipped by $40 in the short term, trading at $5010 per ounce.