President Donald Trump’s trade agenda hit a snag on Friday when the U.S. Supreme Court quashed broad “reciprocal” tariffs imposed under the International Emergency Economic Powers Act, curbing presidential powers in economic crises.
Hours later, Trump fired back on Truth Social, activating Section 122 of the Trade Act of 1974 for a flat 10% import tariff worldwide—later bumped to 15%.
Treasury Secretary Scott Bessent said the move sustains revenue from prior measures while probes into unfair practices continue.
The European Commission hit back Sunday. “A deal is a deal,” it stated, upholding last July’s pact limiting most EU exports to 15% tariffs plus €750 billion in U.S. energy buys by 2028.
U.S. Trade Representative Jamieson Greer confirmed existing deals remain intact, with no partners threatening to pull out.
India paused its top-level trade trip to Washington to assess the flux.
Meanwhile, markets lurched. U.S. futures tanked Sunday night—Dow down 1,100 points (2.7%), S&P 500 futures off 3.9%, Nasdaq 100 minus 4.7%—though Asia-Pacific stocks climbed Monday.
“Sit on hands and do nothing, this is just noise, there will be something new to worry about within a few days,” said Hugh Dive, chief investment officer at Atlas Funds Management.
U.S.-Iran talks resume Thursday in Geneva via Oman, eyeing nuclear curbs despite sanctions relief disputes. Trump mixes deal hopes with regional military boosts.
All eyes now fix on Nvidia’s Q2 earnings Wednesday, forecast at $46.7 billion revenue (up 56% YoY). CEO Jensen Huang’s take on AI capex, deployment, and sector shake-ups—from trucking to private credit—looms large amid the trade storm.