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

The Supreme Court will decide whether President Trump could use the IEEPA to impose tariffs, and analysts told Reuters that a ruling against the tariffs could require refunds and increase market volatility.

The U.S. Supreme Court is expected to issue a decision soon on whether President Trump could use the International Emergency Economic Powers Act to impose tariffs without congressional approval. The case was argued in November and justices showed skepticism during those proceedings. Markets and investors have been watching because a ruling against the tariffs could require refunds and influence Treasury yields and equity volatility. Key points: - The Supreme Court is set to decide whether the president may use the IEEPA to impose tariffs without congressional approval, with a ruling possible as soon as Friday, according to the article. - Justices signaled skepticism during November arguments, and the article notes online betting markets place roughly a 30% chance the court will uphold the tariffs. - Analysts and investors cited in the article said a ruling that invalidates the tariffs could require refunds estimated at $150 billion to $200 billion and could push Treasury yields higher while increasing equity market volatility. Summary: A court decision could change government revenue flows and market liquidity, with reported effects on Treasury yields and equity volatility. The timing of a decision is expected soon; further specifics are undetermined at this time.