London (AFP) – Global equities traded mixed and the dollar fell slightly Monday as uncertainty over Donald Trump’s tariffs gripped markets after the US Supreme Court struck down a large part of the president’s trade policy. The court on Friday ruled that Trump does not have the authority to impose tariffs under a 1977 law he has relied on to impose sudden levies on individual countries. Trump responded by vowing to impose a global tariff of 10 percent under a different legal authority, before raising it to 15 percent on Saturday.
Wall Street stocks slid at the open amid the higher economic and political uncertainty. “Markets are still trying to get their heads around what ongoing trade policy uncertainty really means for the US economy, and by extension, the dollar,” said market analyst Fawad Razaqzada at FOREX.com. But the Supreme Court ruling and Trump’s new tariffs have created winners and losers depending on the tariff rates in place. That could be seen in equity trading, with Asian stocks gaining and Europe mostly higher as well.
“The big winners from this are Brazil, China, India, Canada, and Mexico, as all these countries had tariffs significantly above 15 percent,” said Trade Nation analyst David Morrison. China, whose Shanghai stock market along with Tokyo were closed for holidays, urged the United States to cancel Trump’s plan for fresh unilateral tariffs. The new 15 percent global duties are due to kick in on Tuesday, with exemptions for some products. They will expire in 150 days unless Congress votes to extend them.
European Union lawmakers said they planned to freeze a key trade deal that had been struck with the United States after Trump’s tariffs blitz took hold last year. Lawmakers from different parliamentary groups told AFP that they supported putting the deal on ice until there was more clarity on what the court ruling means for the EU. Bloomberg meanwhile reported that Indian trade officials would postpone a trip to the United States aimed at finalizing their interim agreement.
Asian investors welcomed the Supreme Court’s decision, which is seen as benefiting China and India, with tech firms the best performers. Hong Kong’s stock market closed up more than two percent, with share prices of e-commerce titans Alibaba and JD.com surging more than three percent. Seoul hit another record high thanks to big advances for chipmakers Samsung Electronics and SK Hynix. Singapore, Wellington, Taipei, Mumbai, Bangkok, and Manila also rose, while Sydney dipped.
The strong start to the week followed gains Friday on Wall Street, where the tariffs ruling overshadowed data showing that the US economy grew much slower than expected in the fourth quarter of 2025, when it was hit by the extended government shutdown. Elsewhere on Monday, oil prices rose amid concerns about a possible US strike on Iran after Trump warned “bad things happen,” as he deployed warships, fighter jets, and other military hardware to the Middle East.
– Key figures at around 1430 GMT –
New York – Dow: DOWN 0.1 percent at 49,559.38 points
New York – S&P 500: DOWN less than 0.1 percent at 6,905.40
New York – Nasdaq Composite: DOWN 0.1 percent at 22,863.59
London – FTSE 100: UP 0.3 percent at 10,718.92
Paris – CAC 40: UP 0.1 percent at 8,524.74
Frankfurt – DAX: DOWN 0.5 percent at 25,138.63
Hong Kong – Hang Seng Index: UP 2.5 percent at 27,081.91 (close)
Shanghai – Composite: Closed for a holiday
Tokyo – Nikkei 225: Closed for a holiday
Euro/dollar: UP at $1.1798 from $1.1788 on Friday
Pound/dollar: UP at $1.3504 from $1.3487
Euro/pound: DOWN at 87.34 pence from 87.37 pence
Dollar/yen: DOWN at 154.79 yen from 155.02 yen
Brent North Sea Crude: UP 0.3 percent at $71.54 per barrel
West Texas Intermediate: UP 0.4 percent at $66.77 per barrel
burs-rl/rmb
© 2024 AFP
