Market risk rises as Supreme Court weighs Trump's emergency tariff powers

The U.S. Supreme Court will decide whether President Trump can use the International Emergency Economic Powers Act to impose tariffs without congressional approval, with a decision possible as early as Friday; analysts say the ruling could affect government revenue and market volatility.

A U.S. Supreme Court decision on President Trump's use of emergency tariff powers is expected soon. The case will determine whether he can invoke the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval. During November arguments, the justices signaled skepticism about that authority. Markets and analysts say the ruling could influence government revenue and financial-market volatility. What is known: - The case will determine whether the president can use IEEPA to impose tariffs without congressional approval. - A decision could come as early as Friday, and justices showed skepticism during November arguments. - Reports say a ruling that voids the tariffs could lead to large refund claims, with investors estimating roughly US$150–200 billion in payments, and could push Treasury yields higher. - It is unclear whether affected companies would be legally entitled to refunds, and the administration could pursue alternative legal routes to impose tariffs. Summary: The Supreme Court will resolve the legal basis for the tariffs, and its decision could affect federal revenue and market volatility. Market reactions and the legal question of refunds remain undetermined at this time.