U.S. stocks fell Monday morning in the first trading session since President Donald Trump announced a new 15% tariff on most imported goods. This announcement renewed concerns among investors about the administration’s shifting trade stance after the Supreme Court recently struck down a significant portion of his earlier tariff plan.
The Dow Jones Industrial Average dropped about 650 points, or 1.3%, in morning trading. The S&P 500 went down by 0.6%, and the Nasdaq declined by 0.5%, according to ABC News.
Crypto prices also fell as Bitcoin decreased by 2.2% to roughly $66,075, while gold rose to its highest level in three weeks as investors sought a safe haven amid uncertainty.
Trump announced the new tariff over the weekend after the Supreme Court ruled on Friday that the International Emergency Economic Powers Act does not allow his sweeping levies. This 6-3 decision canceled a large part of his “Liberation Day” tariffs and other measures tied to the emergency powers law.
Hours after the ruling, Trump stated he would sign an executive order imposing a new 10% “global tariff,” and then he raised the rate to 15% on Saturday.
The administration has indicated a different legal path for the new tariff. The publication reported that Trump still has the authority to impose a 15% tariff for up to 150 days under the Trade Act of 1974. This act allows the president to take action to address trade imbalances with other countries.
Speaking at the White House on Friday, Trump mentioned his plans to start investigations as part of an effort to impose more tariffs in the coming months. “It’s a little longer process,” he said. “I tried to make things simple but they wouldn’t let us do that.”
In a social media post on Monday, Trump continued to criticize the Supreme Court over the ruling. He wrote that the court “accidentally and unwittingly gave me, as President of the United States, far more powers and strength than I had before.”
While the Supreme Court ruling limited the administration’s use of emergency powers for broad tariffs, some of Trump’s current tariffs still remain in effect. Per ABC, the measures unaffected by the ruling include a 50% tariff on steel and aluminum products.
Markets have fluctuated in recent weeks as investors consider the economic effects of higher import costs, possible retaliation from trading partners, and the legal strength of the administration’s trade actions. A separate report from the Financial Times noted that the renewed tariff threat has also pushed investors toward gold and increased uncertainty about global trade flows.
The Supreme Court’s ruling has immediate effects on businesses that started adjusting supply chains and pricing based on the now invalidated emergency tariffs. It has also sparked a new political debate over how far Trump can go without Congress as he tries to influence trading partners and reshape import policy. With the little-used law that he used to hike up the tariffs to 15%, the president will need congressional approval after a few months.
