The Supreme Court is expected to soon issue a ruling on whether Donald Trump\u2019s tariffs are legal – REUTERS\/Evelyn Hockstein <\/p>\n
US stocks slumped on Wednesday as the US Supreme Court failed once again to issue a ruling on the legality of Donald Trump\u2019s global tariffs.<\/p>\n
Stock indices were lower on Wall Street as uncertainty continues about the case which has huge repercussions for the global economy.<\/p>\n
However, justices once again declined to issue a ruling. The Supreme Court does not issue guidance beforehand on which cases will be its focus.<\/p>\n
In a major test of the US president\u2019s power, justices are expected to soon rule against the way his so-called \u201cliberation day\u201d tariffs were imposed on the world.<\/p>\n
President Trump invoked the International ⁠Emergency \u200cEconomic Powers Act (IEEPA) to impose \u200dwhat he described as \u201creciprocal\u201d tariffs on goods imported from individual countries in April last year.<\/p>\n
He had earlier invoked the same law to impose tariffs on China, Canada and Mexico, claiming it was to address a national emergency to halt drug trafficking into the US.<\/p>\n
03:22pm<\/p>\n
Sorry to lead you up the garden path but the Supreme Court has once again declined to publish its ruling on Donald Trump\u2019s tariffs.<\/p>\n
Stocks appeared to react badly to the ongoing uncertainty, with the Nasdaq Composite down 0.9pc and the S&P 500 falling 0.5pc. The Dow Jones Industrial Average slumped by 0.2pc.<\/p>\n
The world will have to wait until at least Tuesday or Wednesday next week to learn its views. A decision against the US president could open the door to more than $130bn (\u00a396.6bn) in tariff refunds.<\/p>\n
03:02pm<\/p>\n
Once again, the Supreme Court did not publish a ruling on the legality of Donald Trump\u2019s tariffs.<\/p>\n
02:54pm<\/p>\n
As governments around the world wait to see if the Supreme Court issues its ruling, Donald Trump is focusing on a country barely affected by his tariff campaign: Greenland.<\/p>\n
The US president reiterated his demand that ⁠Washington must take control of the Danish territory.<\/p>\n
He said the mineral-rich island is vital to US security to prevent Russia or China occupying it. He says all options are on the table for securing the territory.<\/p>\n
\u201cIt is vital for the Golden Dome that we are building,\u201d he said in a social media post just hours before The Danish and Greenlandic foreign ministers will meet vice president JD Vance at the White House.<\/p>\n
02:47pm<\/p>\n
Wall Street\u2019s major banks slumped despite reporting higher profits as the financial sector was rocked by Donald Trump\u2019s plans to limit credit card interest rates.<\/p>\n
In another headache for global investors, Bank of ⁠America and Wells Fargo both fell more than 3pc as the US president said he wanted to cap rates at 10pc.<\/p>\n
Citigroup also edged lower after its latest results, a day after JP Morgan executives warned the credit card planms could squeeze consumers and dent profitability.<\/p>\n
The drop in major banks comes despite retail sales in the US picking up in November, according to official data delayed by the federal shutdown last year.<\/p>\n
Economists caution that the underlying picture for consumption could be mixed after sales rose by 0.6pc compared to the previous month to $735.9bn (\u00a3546.6bn).<\/p>\n
Separate figures showed that wholesale prices rose by 0.2 percent in November, driven by a jump in goods costs.<\/p>\n
02:31pm<\/p>\n
Thanks for joining me. US stocks slumped in early trading as the US Supreme Court was expected to issue a ruling on the legality of Donald Trump\u2019s global tariffs.<\/p>\n
Stock indices were lower on Wall Street in advance of the potential ruling in a case which has huge repercussions for the global economy. The tech-heavy Nasdaq Composite was down around 0.8pc while the S&P 500 dropped by 0.5pc after the open.<\/p>\n
In a major test of the US president\u2019s power, justices are expected to rule against the way his so-called \u201cliberation day\u201d tariffs were imposed on the world.<\/p>\n
President Trump invoked the International ⁠Emergency \u200cEconomic Powers Act (IEEPA) to impose \u200dwhat he described as \u201creciprocal\u201d tariffs on goods imported from individual countries in April last year.<\/p>\n
He had earlier invoked the same law to impose tariffs on China, Canada and Mexico, claiming it was to address a national emergency to halt drug trafficking into the US.<\/p>\n
The Supreme Court is due to release its latest rulings at 3pm UK time, although it does not announce beforehand which cases will be the focus. Investors had waited to see if it would issue an update on Friday, but nothing was delivered on tariffs. Here is what you need to know.<\/p>\n
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