The US Supreme Court has ruled that President Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were not valid, in a decision that could have significant consequences for global markets. Rob Burdett, Head of Multi Manager at Nedgroup Investments, shares his views on what the ruling could mean for equities, bonds, currencies and broader trade dynamics.
Rob Burdett, Head of Multi-Manager at Nedgroup Investments, said:
“This ruling has major implications for the limits of US presidential power and the division of power between the legislative branch and the executive branch, but also as a macro catalyst across equities, bonds, currencies and global trade flows. The Supreme Court’s decision on Trump’s tariffs is a major macro event with multi‑asset ramifications.
For equities, the ruling against the tariffs is widely expected to lift US and global equities. Relief from trade uncertainty may act as a tailwind for cyclicals and import‑dependent sectors such as IT hardware (including semiconductors, although they will most likely be included in sectoral tariffs), retail and industrials.
In terms of bonds, treasury yields could rise (more so at the longer end) due to expectations of stronger trade activity and a potential widening of the fiscal deficit (if the historic refunds must be paid).
The US dollar may soften if tariff refunds increase the deficit and reduce the policy‑tightening impulse from higher import prices.Elsewhere, lower input costs ease pressure on margins, especially for retailers and manufacturers.”
