Backup Plans for Tariffs
Even if the U.S. Supreme Court concurs with a federal appeals court deeming many of President Donald Trump’s tariffs as illegal, the situation regarding these levies remains unresolved.
U.S. Treasury Secretary Scott Bessent disclosed to Reuters on Monday that there are “other authorities that can be used” to maintain the tariffs. One potential avenue mentioned is the Smoot-Hawley Tariff Act.
Interestingly, the Smoot-Hawley Act is often cited as “among the most catastrophic acts in congressional history,” according to an article on the U.S. Senate website.
Market Reactions
Due to the Labor Day holiday, U.S. markets were closed on Monday and thus did not react to Bessent’s remarks or the federal court’s ruling, which surfaced after the market closed on Friday.
For now, futures linked to U.S. stocks showed little change on Monday night. Investors seem to have acclimated to the unpredictable nature of Trump’s tariffs, adopting a wait-and-see stance.
Looking Ahead
In the current climate, there seems little incentive to brace for a potential outcome that could spark further legal disputes. As the adage goes, it’s never truly over until it’s over — just another day in Trump’s America.
