US equities fell sharply in early trading as investors braced for an expected ruling by the Supreme Court of the United States on the legality of global tariffs imposed by Donald Trump.
Stock indices on Wall Street moved lower ahead of the anticipated decision in a case with potentially far-reaching consequences for the global economy. Stocks weakened amid ongoing uncertainty, with the Nasdaq Composite down 0.9% and the S&P 500 down 0.5%. The Dow Jones Industrial Average also moved lower, slipping by 0.2%.
The case represents a significant test of presidential authority, with justices widely expected to rule against the way Mr Trump’s so-called “liberation day” tariffs were implemented. The former president relied on the International Emergency Economic Powers Act to introduce what he described as “reciprocal” tariffs on imports from a range of countries in April last year.
Mr Trump had previously invoked the same legislation to impose tariffs on China, Canada and Mexico, citing a national emergency linked to drug trafficking into the United States.
The Supreme Court is scheduled to release its latest rulings on Tuesday or Wednesday next week, although it does not indicate in advance which cases will be addressed. Markets had been alert to the possibility of an update on tariffs on Friday, but no decision was issued at that time.
