Key takeaways

• The US Supreme Court ruled 6–3 that President Trump couldn't use the International Emergency Economic Powers Act (IEEPA) of 1977, but the administration will continue tariff policy under alternative statutory powers.
• Using section 122, a new 10% global tariff was announced on Friday but already changed to 15% on Saturday. This comes on top of existing measures and will remain in place for up to 150 days.
• The financial market reaction was muted but constructive so far, particularly in import-reliant sectors such as retail, consumer discretionary, autos, and select industrials, reflecting lower near-term cost pressures and reduced legal uncertainty. For fixed income and FX, the effects are more nuanced. Lower effective import taxes may ease goods inflation at the margin over time, providing modest support for bonds, while reduced trade tension offers limited near-term support to risk sentiment. USD could be slightly weaker on positive global sentiment.

Please refer to the full report for details about the event and our investment view.

https://www.hsbc.com.my/wealth/insights/market-outlook/special-coverage/our-thoughts-on-the-us-supreme-court-ruling-and-market-implications/