The court ruling invalidates a large portion of Trump administration tariff policies in its second term, but other legal avenues to impose tariffs remain available to the White House. Trump called the ruling regrettable and stated he intends to rely on other trade laws, including Section 122 of the Trade Act of 1974, to impose tariffs of around 10% on foreign goods. However, these alternative paths are usually more time consuming and come with greater legal limitations, therefore implementing tariffs quickly and broadly, as in the past, will be more difficult.

The US Supreme Court announced that Donald Trump did not have the authority to use the 1977 emergency law to impose broad tariffs, and these tariffs were deemed illegal. As a result, Trump’s tariffs were revoked and the government is required to refund approximately 170 billion dollars collected as import tariffs. The court’s ruling supported global equities, the US dollar fell in the short term, and gold rose due to uncertainty

PCE inflation in the United States increased more than expected in December, with the monthly core index reaching 0.4%, a development that could delay interest rate cuts. According to the Bureau of Economic Analysis, core inflation rose to 3.0% on an annual basis and remains above the 2% target. Data from the Bureau of Labor Statistics also points to continued stickiness in services inflation, although some components remain highly volatile. Economists, including Barclays analysts, believe this trend will likely prevent the Federal Reserve from cutting rates before June.

The oil market has started 2026 with a price surge, with Brent climbing above 72 dollars, largely driven by geopolitical risks and supply disruptions. Traders are rapidly hedging through futures and options markets due to the possibility of conflict involving Iran and Donald Trump. Concerns about the security of oil transit through the Strait of Hormuz and reduced supply in some countries have turned expectations of surplus into a tighter market. As a result, volatility has increased and analysts believe the geopolitical risk premium could push oil prices even higher.