The U.S. Supreme Court has ruled against President Trump's "reciprocal" tariffs, deeming them unconstitutional. This decision dismantles a key component of Trump's economic policy, potentially leading to significant tariff refunds.
Retail and apparel stocks surged following the ruling, as the market anticipates reduced costs for imported goods. This could lead to lower consumer prices and increased profit margins for companies reliant on imports.
The decision represents a significant political setback for Trump, challenging the extent of presidential authority in trade policy. It may also influence future administrations' approaches to tariff imposition.