The Trump administration has officially stopped collecting tariffs that the Supreme Court of the United States ruled illegal — but markets barely had time to react before a new wave of trade levies arrived.
US Customs and Border Protection (CBP) confirmed it would deactivate all tariff codes tied to the International Emergency Economic Powers Act (IEEPA) at midnight Tuesday.
That decision follows last week’s ruling that Donald Trump overstepped his authority by imposing sweeping “liberation day” tariffs using emergency powers.
But instead of stepping back, Trump introduced a new 15% flat-rate global tariff under a different legal authority — set to last up to 150 days.
Markets React: Dollar Down, Gold Up
Investors responded swiftly:
- The US dollar fell 0.4% against a basket of major currencies
- Gold jumped 0.6% to $5,135 an ounce — its highest since January
- Bitcoin dropped as much as 4.8% before partially recovering
- Futures tied to the S&P 500 slid 0.5%
Gold’s rise signals a classic move toward safe-haven assets as uncertainty deepens.
Economists at ING wrote that the president has “no intention of removing his ‘most beautiful word’ from the English dictionary.”
“Uncertainty is back,” they warned, adding that the risk of escalation is now higher than a year ago.
$175 Billion Question: Will Refunds Happen?
The court’s ruling potentially puts more than $175 billion in tariff revenue at stake — money that importers may now seek back.
However, CBP offered no clarity on refunds.
“CBP will provide additional guidance,” the agency said, without detailing any repayment process.
Trade lawyers expect a complicated and potentially lengthy refund battle.
Trade Deals in Limbo?
US officials moved quickly to reassure allies that existing trade agreements would stand.
US Trade Representative Jamieson Greer said the US intends to “stand by” its recent deals and expects partners to do the same.
That includes the agreement announced last May with UK Prime Minister Keir Starmer — suggesting Britain’s tariff rate may not automatically rise to 15%.
Still, UK officials admitted businesses face renewed uncertainty.
The FTSE 100 dipped 0.2% in early trading Monday.
Europe and China Push Back
European leaders have signaled growing frustration, warning that further escalation could follow.
China’s commerce ministry called on Washington to lift tariffs entirely, stating:
“There are no winners in a trade war and protectionism leads nowhere.”
Beijing said it is conducting a “comprehensive assessment” of the ruling’s impact.
The Bigger Picture: A Trade War Reboot?
The Supreme Court intended to rein in executive power over trade.
But Trump’s rapid pivot demonstrates his determination to keep tariffs at the center of US economic strategy.
By shifting legal authority, he avoided a pause in protectionist policy — though at the cost of fresh market turbulence.
The question now isn’t whether tariffs remain.
It’s how long this next round will last — and how aggressively other countries respond.
For investors and businesses, one thing is clear:
The legal chapter may have closed.
The trade war chapter has reopened.
