Supreme Court Blocks Trump Tariffs as Iran Tensions Rise

The Supreme Court of the United States ruled 6–3 that the International Emergency Economic Powers Act does not grant the president authority to impose country-wide tariffs without congressional approval. This decision effectively invalidated the "Liberation Day" tariffs enacted by Donald Trump.

In response to the ruling, the administration pivoted by imposing a temporary 10% global tariff under Section 122 of the Trade Act of 1974. The government also launched new sector-specific investigations focusing on lumber, automotive, steel, and aluminum.

Parallel to these trade disputes, geopolitical tensions escalated as the president established a 10-day decision window for a diplomatic framework intended to dismantle the nuclear and missile capabilities of Iran.

Adding to the instability, late January minutes from the Federal Reserve System revealed a hawkish tone, with policymakers suggesting that rate hikes remain a possibility due to persistent inflation risks. Despite these combined monetary and geopolitical shocks, U.S. equity markets remained stable.