Dollar and stocks decline after US Supreme Court hits Trump’s tariffs
Financial Times
February 23, 2026
AI-Generated Deep Dive Summary
The US Supreme Court’s ruling against former President Donald Trump’s steel and aluminum tariffs has sent shockwaves through financial markets, causing the dollar and stocks to decline while gold prices rose. The decision, which invalidated key portions of the 2018 trade policy, reflects growing concerns over the legality and economic impact of protectionist measures. Investors are now pricing in increased uncertainty surrounding President Joe Biden’s trade agenda, as the ruling sets a precedent for challenging future tariffs.
Markets had already been on edge ahead of the Supreme Court decision, with fears that Trump’s aggressive trade policies could escalate tensions with key allies like Canada and Europe. The court’s 6-3 ruling found that the tariffs violated international law by targeting specific countries without proper justification. This has led to a reevaluation of risk sentiment, with safe-haven assets like gold gaining traction as investors seek stability in the face of heightened trade policy uncertainty.
The decline in stocks, particularly in sectors reliant on global trade such as manufacturing and technology, underscores the broader economic implications of the ruling. Treasury yields have also fallen, signaling a flight to safety among bond investors. This shift highlights the delicate balance between protectionist policies and free trade principles, which could have far-reaching consequences for US relations with other nations.
For businesses, the Supreme Court’s decision serves as a reminder of the legal and economic risks associated with unilateral trade measures. The ruling may prompt a reevaluation of Trump-era tariffs on goods like solar panels and washing machines, potentially opening up new opportunities for importers and exporters alike. However, it also raises questions about how future trade disputes will be resolved under a Biden administration that has emphasized multilateral approaches.
The outcome of this case is not just a win for international trade law but also a significant blow to the legacy of Trump’s trade policies. As markets continue to navigate the complexities of global trade negotiations, the Supreme Court’s decision will likely influence how
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Originally published on Financial Times on 2/23/2026