Supreme Court Overturns Trump Tariffs, Wall Street Gains Modestly, President Vows New Measures
Updated (2 articles)
Supreme Court Nullifies Trump’s Broad Import Tariffs The high court struck down President Donald Trump’s sweeping import taxes on February 20, 2026, ending a year‑long legal battle that had kept markets on edge. The ruling removed the immediate threat of the tariffs, which had been announced last year and caused widespread panic among traders. Analysts view the decision as a decisive legal reversal that restores predictability to U.S. trade policy [1].
Major Indices Record Modest Gains After Ruling The S&P 500 climbed 0.7% to 6,909.51, the Dow Jones Industrial Average added 230 points (0.5%) to finish at 49,625.97, and the Nasdaq rose 0.9% to 22,886.07 following the court’s announcement. Gains were broad‑based, reflecting relief that the tariff threat had been removed. Trading volume remained moderate, suggesting investors were digesting the news rather than launching aggressive buying sprees [1].
Analysts Note Anticipated Verdict Limited Volatility Brian Jacobsen, chief economic strategist at Annex Wealth Management, said the market’s muted reaction indicated that many investors had already priced in a favorable ruling for the administration. He added that the decision removed a “significant source of uncertainty” that had been depressing equity valuations. Jacobsen expects the market to continue its upward trajectory if the administration refrains from further disruptive trade actions [1].
President Trump Announces New 10% Global Tariff Order In an afternoon briefing, Trump pledged to sign an executive order imposing a 10% global tariff for up to 150 days, positioning it as a “temporary safeguard” while other tools are explored. He also signaled plans to pursue additional tariffs through Commerce Department investigations into alleged unfair trade practices. The president framed the move as a continuation of his “America First” agenda despite the court’s setback [1].
Sector Movers Diverge: Ralph Lauren Up, Akamai Down Apparel retailer Ralph Lauren rebounded, finishing the session up 2.2% after earlier losses, while technology firm Akamai Technologies plunged 14.1% on a weak profit outlook. Comfort Systems International bucked the trend, jumping 6.5% after reporting stronger‑than‑expected quarterly earnings. These sector swings highlight how investors are selectively rewarding companies perceived as insulated from trade policy turbulence [1].
Bond Yields Remain Steady Amid Rate‑Cut Expectations The 10‑year Treasury yield held at 4.08% and the two‑year at 3.48%, indicating little immediate reaction to the tariff decision. CME Group data showed markets still betting on at least two Federal Reserve rate cuts this year, despite lingering inflation concerns. Fixed‑income traders appear to view the court ruling as a short‑term catalyst rather than a long‑term driver of yield movements [1].
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Timeline
2025 – Tariff revenue surges by about 200%, with the United States collecting $187 billion more than in 2024, underscoring the fiscal impact of Trump‑era import taxes [1].
2025 – Businesses bear roughly 80% of the tariff bill, but analysts project the pass‑through to consumers will rise in 2026 as the firms’ share falls to about 20%; Kyle Peacock says clients “are increasingly passing costs onto buyers.” [1]
2025 – Goldman Sachs economists estimate tariffs added 0.5 percentage point to inflation in 2025 and forecast an additional 0.3 point in the first half of 2026, echoing Fed Chair Jerome Powell’s remark that tariffs “contributed to inflation beyond the 2% target.” [1]
2025 – The White House pauses or rolls back tariffs on produce, furniture, cabinets and pasta in response to household affordability concerns, reflecting political pressure on the tariff regime [1].
Jan 2026 – A landmark Supreme Court case looms that could invalidate Trump’s sweeping tariffs and trigger refunds on previously paid duties, with the decision expected “in the coming weeks.” [1]
Feb 20, 2026 – The Supreme Court nullifies Trump’s broad import taxes, instantly easing market panic and removing a major source of price pressure on goods [2].
Feb 20, 2026 – U.S. equities post modest gains after the ruling, with the S&P 500 up 0.7% to 6,909.51, the Dow up 0.5% to 49,625.97, and the Nasdaq up 0.9% to 22,886.07, reflecting investor confidence in the decision [2].
Feb 20, 2026 – Analysts say the muted market reaction reflects prior expectations, quoting Brian Jacobsen: “The market’s muted reaction reflected expectations that the court would side with the administration.” [2]
Feb 20, 2026 – President Trump announces he will sign an executive order imposing a 10% global tariff for up to 150 days and pursue additional tariffs through Commerce Department investigations, signaling a new round of trade pressure despite the court’s ruling [2].
Feb 20, 2026 – Bond markets hold steady, with the 10‑year Treasury yielding 4.08% and the two‑year 3.48%, while traders continue to price in at least two Federal Reserve rate cuts this year, underscoring lingering inflation concerns [2].
2026 – Market participants anticipate two Fed rate cuts in 2026, a projection that could temper inflationary pressures even as tariff‑related price effects fade [2].