Uncertainty Lingers as US Supreme Court Withholds Decision on Trump’s Tariffs

The US Supreme Court issued three decisions on Wednesday but did not rule on the case concerning the legality of President Donald Trump’s global reciprocal tariffs. The court also did not announce when it would issue a ruling on the matter. The legality of Trump’s tariffs represents a major test of presidential powers. The US Supreme Court was expected to issue its verdict on tariffs imposed under the International Emergency Economic Powers Act on Wednesday. According to analysts and experts, a verdict on the global tariffs could have rippling effects across markets and the global economy.

In November, during arguments in the case, conservative and liberal justices expressed scepticism about the tariffs’ legality, which Trump imposed under the 1977 law preserved for use only during national emergencies. Lower court rulings have found that the president overstepped his power and authority, decisions the Trump administration is appealing.

At the centre of the issue is whether a president can unilaterally impose sweeping trade tariffs citing national security, or whether such actions overstep his authority and constitutional limits. A majority of market participants anticipate that the Supreme Court is likely to strike down Trump’s tariffs.

Ahead of the much-awaited ruling, Trump cautioned that the US could face “trillions of dollars” in losses if the court ruled against his trade and tariff policy, declaring that the country would be “screwed.” On his social media platform, Truth Social, Trump said a decision against the policies could force the US to repay “many hundreds of billions of dollars” in tariffs already collected, adding that the economy would face “payback” claims from corporate entities and countries that have invested in factories, plants, and equipment to avoid duties.

The apex court has not indicated when it will take up the case or set a date for delivering the ruling. The Supreme Court, in practice, does not disclose in advance which decisions will be released on a given date. Globally, a verdict was expected on January 9; however, the delay now leaves businesses and countries with greater uncertainty over the future of Trump’s trade policies amid an evolving geopolitical environment and escalating regional tensions.

India faces a total tariff of 50%, comprising a 25% punitive levy in addition to a 25% reciprocal tariff. Trade negotiations between New Delhi and Washington are continuing after a brief pause due to stalled communication.