Asian markets reacted sharply to renewed chaos in U.S. trade policy, reviving the “sell America” narrative as the dollar and Wall Street futures declined.
The Supreme Court struck down President Donald Trump’s emergency tariff policy, ruling it unlawful. Within hours, Trump unveiled a sweeping 10% global tariff, effective Tuesday.
Less than a day later, he escalated the measure to 15% immediately, reportedly catching officials off guard. The White House released exemptions, though their applicability remains uncertain.
The statute invoked reportedly prohibits discrimination between countries, meaning all nations face identical tariffs. Sanctioned states, including Russia and North Korea, are unexpectedly included.
The revision raises tariffs for allies such as the UK and Australia, while potentially lowering rates for others, including China. India paused negotiations, and Brussels rejected adjustments.
The measure expires after 150 days unless extended by Congress. Republican lawmakers may hesitate, given polling shows tariffs remain deeply unpopular with voters.
Treasury Secretary Scott Bessent warned of embargoes for non-compliant partners. Meanwhile, over 1,800 lawsuits seek refunds on roughly $170 billion in contested duties.
Market uncertainty intensified ahead of Nvidia’s earnings, with S&P 500 futures down 0.8% and Nasdaq futures off 1%, testing confidence in the AI-driven rally.
