A fresh bout of trade uncertainty has hit Washington and global markets after President moved to introduce new trade tariffs similar to those from last year that the Supreme Court of the United States had just declared unlawful.
Trump, who traders derided last year by betting he would 'chicken out' on the higher rates he threatened to impose, has returned to one of his favourite themes for dominating the global news agenda, reopening questions about corporate costs, federal revenue and the outlook for growth.
Within hours of the ruling, Trump announced a temporary 10% tariff on imports worldwide, invoking Section 122 of the Trade Act of 1974, which allows short-term trade restrictions for up 150 days. The administration also said it would expand the use of Section 301 investigations to pursue additional duties aimed at what it calls unfair foreign trade practices.
The move followed a 6–3 Supreme Court decision striking down the legal foundation of many of Trump’s earlier tariffs. The justices found that the White House had overstepped by relying on the International Emergency Economic Powers Act to impose sweeping global levies, concluding that the emergency law does not clearly authorize tariff powers.
At a White House briefing, Trump described the court’s ruling as "deeply disappointing."
Investors on Wall Street remained notably calm in the face of the renewed turmoil surrounding global tariffs: the S&P 500 rose about 0.7%, the tech-focused Nasdaq climbed around 0.9% and the Dow Jones rose roughly 0.5% on 20 Feb.
Traders bought and sold (BTC). The original was up about 2.5% at 09:00UTC Saturday since 14:00UTC the previous day though at $68,000 per unit it still languishes below the week's highest point.
Billions in refunds at stake
The court ruling places an estimated $133bn in previously collected duties into legal limbo, according to The Wall Street Journal, with lower courts likely to determine whether companies that paid those tariffs are entitled to refunds.
Trump’s immediate replacement tariffs ensure that import costs will continue to through supply chains. Because Section 122 authority is time-limited, businesses face renewed uncertainty over whether the new 10% levy will lapse, be extended or face further legal challenges. For companies setting prices, negotiating contracts or issuing earnings guidance, the lack of clarity complicates planning.
Tariff turbulence meets slowing growth
The tariffs dispute also comes as new data showed US growth slowing at the end of 2025, with trade volatility and policy uncertainty cited as contributing factors.
The US economy expanded at an annual rate of 1.4% in the previous quarter, well below the 3.0% economists expected and marking a sharp decline from the 4.4% recorded in the third quarter.
The DXY Index, which compares the dollar with a basket of other major currencies, was little changed by close of business in the US on Friday.
