The Supreme Court is expected to soon issue a ruling on whether Donald Trump’s tariffs are legal – REUTERS/Evelyn Hockstein
US stocks slumped on Wednesday as the US Supreme Court failed once again to issue a ruling on the legality of Donald Trump’s global tariffs.
Stock indices were lower on Wall Street as uncertainty continues about the case which has huge repercussions for the global economy.
However, justices once again declined to issue a ruling. The Supreme Court does not issue guidance beforehand on which cases will be its focus.
In a major test of the US president’s power, justices are expected to soon rule against the way his so-called “liberation day” tariffs were imposed on the world.
President Trump invoked the International ⁠Emergency Economic Powers Act (IEEPA) to impose what he described as “reciprocal” tariffs on goods imported from individual countries in April last year.
He had earlier invoked the same law to impose tariffs on China, Canada and Mexico, claiming it was to address a national emergency to halt drug trafficking into the US.
03:22pm
Sorry to lead you up the garden path but the Supreme Court has once again declined to publish its ruling on Donald Trump’s tariffs.
Stocks appeared to react badly to the ongoing uncertainty, with the Nasdaq Composite down 0.9pc and the S&P 500 falling 0.5pc. The Dow Jones Industrial Average slumped by 0.2pc.
The world will have to wait until at least Tuesday or Wednesday next week to learn its views. A decision against the US president could open the door to more than $130bn (£96.6bn) in tariff refunds.
03:02pm
Once again, the Supreme Court did not publish a ruling on the legality of Donald Trump’s tariffs.
02:54pm
As governments around the world wait to see if the Supreme Court issues its ruling, Donald Trump is focusing on a country barely affected by his tariff campaign: Greenland.
The US president reiterated his demand that ⁠Washington must take control of the Danish territory.
He said the mineral-rich island is vital to US security to prevent Russia or China occupying it. He says all options are on the table for securing the territory.
“It is vital for the Golden Dome that we are building,” he said in a social media post just hours before The Danish and Greenlandic foreign ministers will meet vice president JD Vance at the White House.
02:47pm
Wall Street’s major banks slumped despite reporting higher profits as the financial sector was rocked by Donald Trump’s plans to limit credit card interest rates.
In another headache for global investors, Bank of ⁠America and Wells Fargo both fell more than 3pc as the US president said he wanted to cap rates at 10pc.