Stock markets tumbled on Monday after Donald Trump threatened to impose new tariffs in a 'much more powerful and obnoxious way', despite a Supreme Court ruling that his previous tariff regime was unlawful. The Dow Jones industrial average fell 1.6%, while the S&P 500 and Nasdaq 100 dropped 1.4% and 1.1% respectively, following losses in European markets.
The uncertainty stems from the Supreme Court's Friday decision that Trump overstepped his legal authority by using emergency measures to impose tariffs. Undeterred, Trump announced over the weekend a temporary 10% tariff on all US imports, later raised to 15%, under a rarely-used section of the Trade Act of 1974.
On Monday, Trump took to Truth Social to warn world leaders against 'playing games' with the court ruling, threatening higher tariffs for countries that have 'ripped off' the US. The warning comes amid growing domestic opposition, with a YouGov poll showing 60% of Americans support the Supreme Court's decision to strike down the tariffs.
The poll revealed cross-party backing for the ruling, with 88% of Democrats, 63% of independents, and 30% of Republicans in favour. Most Americans also reported that tariffs have increased prices for goods and services, with Republicans four times more likely to say costs have risen than fallen.
A separate Fox News poll found that 63% of registered voters disapprove of Trump's handling of tariffs, raising concerns for Republicans ahead of November's midterm elections. Investors remain wary as the trade war's next steps remain unclear.
