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US COURT BLOW TO TRUMP TARIFFS TRIGGERS POLICY SCRAMBLE AND GLOBAL MARKET RELIEF

The U.S. Supreme Court's move to strike down President Donald Trump's emergency tariff regime is expected to have only a limited effect on U.S. economic growth and inflation, according to analysts, even as the ruling forces Washington into a rapid rewrite of its trade playbook.

Goldman Sachs said the changes leave its estimates "little changed," noting most tariff‑driven price increases had already flowed through before the decision.

On Friday, the U.S. Supreme Court struck down Trump's use of the International Emergency Economic Powers Act (IEEPA) to levy sweeping import tariffs, a move that immediately suspends two-thirds of tariff collections and forces the administration to pivot to narrower, time-limited tools.

The ruling also undercuts Trump's April 2 "Liberation Day" tariff package, which had slapped a 10% baseline duty on all U.S. imports, plus an additional 15%-50% on most countries, many of which were later renegotiated and lowered.

UBS said the ruling "halts collection of about two thirds of the administration's tariff revenues," noting importers may later seek refunds.

The White House moved quickly to install a temporary 15% global tariff under Section 122, a stopgap capped at 150 days. Goldman Sachs warned it "creates new uncertainty" as officials scramble for a durable replacement.

Citi analysts said European apparel retailers could gain a double lift if tariffs weaken permanently and dollar softness persists.

"The likelihood and timeline of any refunds or a permanent change remain uncertain," Citi added.

Markets rallied on Friday, with the S&P 500 finishing up 0.69% and the Nasdaq closing 0.9% higher. The dollar softened, and EUR/USD traded firmer on Monday within a 1.1744–1.1835 range as investors priced in easing inflation pressures and reduced tariff-related risks.

Trade partners are already recalibrating. India paused a negotiating team set to travel to Washington. With the Section 122 tariff expiring midyear, analysts expect the administration to shift to Section 301 probes, a recipe for a more fragmented system than Trump's sweeping "Liberation Day" blueprint.

(Rashika Singh)

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EARLIER ON LIVE MARKETS:

GRAINS: POISED TO REAP SOME BIG GAINS? CLICK HERE

ROTATION INTO VALUE NOT OVER YET - JPM CLICK HERE

MINERS' CAPEX SIGNALS KEEP BOFA WARY ON EQUIPMENT MAKERS CLICK HERE

TECH DRAGS STOXX LOWER AS TRADE CHAOS WEIGHS; UTILITIES RISE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES INCH LOWER CLICK HERE

COUNTING THE COST OF TARIFF CHAOS CLICK HERE