U.S. President Donald Trump’s recent announcement of tariffs of up to 15% shocked markets and sparked an immediate reaction across multiple sectors.
Last Friday, 20 February, the U.S. Supreme Court ruled that earlier tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded the presidential authority. The tariffs have been suspended effective Tuesday and are no longer being collected, while details regarding refunds have yet to be announced. According to some estimates, the total amount subject to potential refunds may reach $170 billion. FedEx, for its part, has already filed a lawsuit seeking a full reimbursement.
Donald Trump criticized the Court’s decision and, the same day, announced new 10% tariffs on global imports under different authority, which took effect on Tuesday, 24 February. The introduced rates are temporary and require congressional approval after 150 days to be extended.
Later, on Saturday, the President announced in a post on Truth Social that he would raise the tariffs to 15%, effective immediately. Although no formal order has been issued yet, the administration is reportedly working on the tariff increase, and the exact timing of the new rates is to be announced. Moreover, the President may also impose additional tariffs under other trade laws.
The announcement sparked a wave of debate, with European lawmakers highlighting what they described as chaotic actions regarding trade agreements. The heightened uncertainty over the trade policy was quickly reflected in the market dynamics. Nasdaq, S&P 500, and Dow futures moved lower on Monday morning, while safe-haven assets advanced. Gold touched a three-week high, and the silver price chart showed a 3% intraday rise before giving back part of the gains. As of midweek, metals continued to trend higher.
Amid the uncertainty, markets closely watched President Donald Trump’s State of the Union address on Tuesday for further signals. In the speech, his longest to Congress, he referenced the Court’s ruling and again called the decision disappointing. He also said he would rely on other legislation to advance his trade policy.
It therefore remains unclear whether the 15% tariffs will take effect and when they will be implemented. However, President Donald Trump’s actions prove he intends to replace the tariffs halted by the Court, potentially introducing even higher rates for some countries, as he previously stated that those playing games with the current trade agreements would face much higher tariffs, though the exact list of trading partners was not specified.
This article was written in cooperation with TRADINGVIEW