Court Rules

The US Supreme Court continues to deliberate whether Trump legally used the International Emergency Economic Powers Act (IEEPA) to justify broad tariffs on imports from many countries. A decision is expected by early 2026, and the repercussions could be huge, both politically and economically.

If the Court rules against Trump, it will mark one of the sharpest curbs on presidential power in decades. It could also force the Treasury to refund billions in duties collected, while upending trade deals negotiated under those tariffs. Congress would reclaim a long-lost say in trade policy, and Trump would lose one of his signature tools of economic warfare.

If the Court sides with Trump, it opens the door for every future president to declare an “emergency” whenever politically convenient. The power to impose tariffs and regulate trade would effectively migrate from Capitol Hill to the Oval Office, a precedent that should make even America’s biggest exporters a little nervous.

If that weren’t enough for financial markets to worry about, corporate layoffs just hit their highest level in twenty years. Goldman Sachs and Morgan Stanley warned about overstretched AI valuations, and we are still waiting on Nvidia’s earnings. Never fear, Rachel Reeves is here and will surely deliver gifts in the Budget to kick off the Santa rally.