Trump announces 15% global tariffs; Waller to give a speech; oil prices fall—Market updates

Investing.com - Futures linked to major U.S. stock indexes declined slightly, as the Supreme Court’s ruling on President Trump’s emergency tariffs continues to cause volatility in financial markets. Trump responded to the ruling, vowing to impose a 15% global tariff, but the duration of these tariffs is limited. Major U.S. trading partners are also seeking clearer information on what this ruling means for the trade agreements previously reached with Washington.

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1. Futures Decline

U.S. stock index futures fell on Monday as investors digest President Trump’s latest move—despite last week’s unfavorable Supreme Court ruling on his emergency tariffs, he decided to impose a temporary 15% across-the-board tariff.

As of 03:08 a.m. Eastern Time (16:08 Beijing Time), Dow futures were down 224 points, a decline of 0.5%, S&P 500 futures fell 40 points, down 0.6%, and Nasdaq 100 futures dropped 185 points, down 0.7%.

Major Wall Street indexes closed higher last week, with the highly anticipated Supreme Court ruling dominating market sentiment. Although the Court rejected Trump’s use of the 1977 Emergency Powers Act to impose comprehensive tariffs on multiple countries, many questions remain about the impact of this ruling, especially regarding the potential need to refund tariffs paid by affected companies.

“Friday’s Supreme Court decision sent a strong signal about limits on presidential power,” said analysts at ING in a report.

However, they added that since Trump is unlikely to use this ruling to quietly exit his aggressive tariff agenda, the future direction of his trade actions remains unclear.

“Uncertainty is back,” they wrote.

2. Trump Sets 15% Global Tariffs After Supreme Court Defeat

Trump called the ruling a “disgrace” and immediately invoked a provision of the Trade Act of 1974 to set a 15% global tariff, lasting up to 150 days, to quickly address “international payment issues.”

An official White House statement initially indicated tariffs would be set at 10% starting Tuesday, but Trump later increased this figure over the weekend.

Crucially, Congress—the branch with constitutional trade authority, which was the core legal basis for the Supreme Court’s ruling against Trump’s emergency tariffs—can extend the so-called Section 122 tariffs for an additional 150 days after expiration.

But as ING analysts pointed out, Trump could also do this. In theory, the president could allow the tariffs to expire, declare a new emergency, and restart the 150-day period, effectively creating a “de facto permanent tariff tool,” they said.

Meanwhile, U.S. Customs and Border Protection announced that it would cease collecting the tariffs rejected by the Supreme Court at 12:01 a.m. Eastern Time on Tuesday (05:01 GMT)—but did not explain why tariffs are still being collected at border crossings days after the ruling, nor whether importers will receive refunds.

3. U.S. Trade Partners Respond to Supreme Court Ruling

At the same time, major U.S. trading partners are trying to understand what the Supreme Court’s decision means for the trade agreements reached with Trump’s administration over the past few months.

The European Commission—the EU’s executive body and chief negotiator for its 27 member states—urged the U.S. to comply with the terms of the agreement reached in 2025. The EC also called for Washington to provide a “full clarification” on how its tariff policies will change following the ruling.

In a statement, the European Commission said the current situation “does not favor the realization of fair, balanced, and mutually beneficial” transatlantic trade and investment. “Agreements are agreements,” the statement added.

Additionally, China—after engaging in a tit-for-tat tariff battle with the U.S. last year—said it is conducting a “comprehensive assessment” of the Supreme Court’s ruling and called on the U.S. to abandon “unilateral tariff measures” against trade partners.

“China-U.S. cooperation benefits both sides, but confrontation is harmful,” said the Ministry of Commerce of China.

4. Waller to Speak

Against this backdrop, investors will closely watch Federal Reserve Board member Christopher Waller’s speech on Monday.

Waller’s remarks in Washington will address the economic outlook. He was one of two policymakers who voted against the Fed’s decision last month to keep interest rates unchanged in the 3.5% to 3.75% range.

While the Fed cited a stable labor market and inflation as reasons for holding rates steady last month, Waller and Fed Governor Stephen Mester have called for lowering borrowing costs, citing concerns that the employment situation could worsen.

The Fed is expected to cut rates multiple times in 2025 and may resume rate cuts later this year, though the timing remains uncertain. The January meeting minutes even hinted that if inflation stubbornly remains above the Fed’s 2% target, rate hikes could be on the table.

Waller’s potential comments on prices, employment, and the impact of the Supreme Court’s tariff ruling could be key points of focus.

5. Oil Prices Decline

Oil prices fell sharply, giving back some of last week’s gains, as investors weigh prospects for a third round of nuclear talks between the U.S. and Iran and new uncertainties stemming from U.S. trade policy.

Brent crude futures dropped 1.3% to $70.39 per barrel, and U.S. WTI crude futures declined 1.4% to $65.55 per barrel.

Both contracts surged nearly 6% last week amid concerns over potential conflict between the U.S. and Iran and an unexpected drop in U.S. crude inventories.

The two countries are now expected to hold their third round of nuclear negotiations in Geneva on Thursday, increasing hopes for a diplomatic resolution and reducing the risk of Middle Eastern oil supply disruptions.

Iran is a major oil producer within OPEC and holds the world’s largest proven crude oil reserves.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.