Stocks sell off as traders wake up to the realization that Trump has ‘highly punitive’ options for new trade tariffs

Fortune

by Jim Edwards

February 23, 2026

AI-Generated Deep Dive Summary

Stocks sold off globally as investors grappled with the potential consequences of President Donald Trump's trade policies following a U.S. Supreme Court ruling on tariffs. The market reaction reflects growing uncertainty about the direction of U.S. trade policy, which could become more complex and far-reaching than initially anticipated. Traders are now bracing for potentially "highly punitive" measures, including Section 301 and 232 tariffs, which have no set limits and can be applied to any country that doesn't reach a trade agreement with the U.S. This shift has already prompted several nations, including Europe and India, to reassess their trade relationships with the United States. The immediate impact was felt in financial markets, with the dollar weakening against major currencies and gold prices rising as investors sought safe-haven assets. While stocks in some regions, like South Korea and India, showed resilience, broader equity indices in Asia and Europe saw declines. The S&P 500 futures dropped 0.22% ahead of the New York open, signaling a cautious mood among traders. Analysts warn that Trump's actions could lead to a fragmentation of global trade, with Asian countries increasingly focusing on regional trade agreements rather than relying on U.S. markets. The situation underscores the delicate balance

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Originally published on Fortune on 2/23/2026