Trump's Global Tariffs Struck Down by Supreme Court

• The Supreme Court voted 6-3 to strike down Trump's global tariffs, deeming the use of IEEPA for imposing these tariffs as illegal.
• This decision affects a significant portion (60-75%) of the current US tariff policy, forcing the administration to use other, less flexible avenues for enacting tariffs.
• Market reaction was largely positive, with the S&P 500 seeing a spike and consumer discretionary companies like Lululemon, Williams-Sonoma, Nike, Mattel, Deckers, Under Armour, Crocs, and American Eagle experiencing notable gains.

The US Supreme Court struck down President Trump's global tariffs, ruling that the use of the International Emergency Economic Powers Act (IEEPA) for these tariffs was illegal. This decision, impacting 60-75% of current US tariff policy, led to an immediate positive market reaction, particularly for consumer discretionary stocks, while bond yields also moved higher.