SYDNEY: Global equities traded mixed, and the dollar fell slightly Monday as uncertainty over Donald Trump’s tariffs gripped markets after the US Supreme Court struck down a large part of the president’s upending trade policy.
The court on Friday ruled that Trump does not have the authority to impose tariffs under a 1977 law he has relied on to impose sudden levies on individual countries
Trump responded by vowing to impose a global tariff of 10% under a different legal authority, before raising it to 15% on Saturday.
“In the US, the uncertainty has hit (stocks) futures on Wall Street,” in addition to some losses across Europe, noted Victoria Scholar, head of investment at Interactive Investor.
Asian chipmakers earlier rallied on the news, boosting the Hong Kong exchange, while European stock markets traveled in different directions approaching the mid-session point. Frankfurt shares were lower, with Paris and London little changed.
China, whose Shanghai stock market, along with Tokyo, was closed for holidays, urged the United States to cancel Trump’s plan for fresh unilateral tariffs.
The new 15% global duties are due to kick in on Tuesday, with exemptions for some products. They will expire in 150 days unless Congress votes to extend them.
European Union lawmakers said they planned to freeze a key trade deal that had been struck with the United States after Trump’s tariffs blitz took hold last year.
Lawmakers from different parliamentary groups told AFP that they supported putting the deal on ice until there is more clarity on what the court ruling means for the EU.
Bloomberg, meanwhile, reported that Indian trade officials would postpone a trip to the United States aimed at finalizing their interim agreement.
Asian investors welcomed the Supreme Court’s decision, which is seen as benefiting China and India, with tech firms the best performers.
Hong Kong’s stock market closed up more than 2%, with share prices of e-commerce titans Alibaba and JD.com surging more than 3%.
Seoul hit another record high thanks to big advances for chipmakers Samsung Electronics and SK hynix.
Singapore, Wellington, Taipei, Mumbai, Bangkok, and Manila also rose. Sydney dipped.
The strong start to the week followed gains Friday on Wall Street, where the tariffs ruling overshadowed data showing that the US economy grew much slower than expected in the fourth quarter of 2025, when it was hit by the extended government shutdown.
