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A Legal Blow That Might Not End Tariffs

The U.S. Supreme Court could soon rule on the legality of former President Donald Trump’s tariffs—an issue that has been tied up in the courts for years. A federal appeals court recently deemed most of the levies illegal, but that doesn’t necessarily mean they will disappear.

U.S. Treasury Secretary Scott Bessent, speaking to Reuters, suggested that Washington still has “other authorities that can be used” to preserve the tariffs even if the Supreme Court sides against the Trump-era measures. Among the tools he mentioned is the historic Smoot-Hawley Tariff Act, a controversial law passed in 1930 that many historians blame for deepening the Great Depression.

Why the Tariffs Still Matter

Trump’s tariffs were a cornerstone of his economic agenda, covering hundreds of billions of dollars in imports from China and other nations. At their peak, the duties impacted more than $360 billion worth of Chinese goods, alongside steel, aluminum, and other sectors. The measures forced multinational companies to rethink supply chains and raised costs for U.S. manufacturers and consumers.

Even today, these tariffs remain a central debate point in U.S. trade policy. While critics argue they increase inflationary pressures and strain global commerce, supporters insist they protect American industries from unfair competition and safeguard jobs.

Markets Wait and Watch

The Supreme Court ruling and Bessent’s remarks arrived on a holiday weekend in the U.S., meaning Wall Street has not yet fully reacted. Stock futures showed little movement Monday evening, suggesting investors are cautious but not panicked.

For global markets, tariff uncertainty has become part of the landscape. The S&P 500 and Dow Jones Industrial Average have absorbed years of tariff-related volatility, while exporters in Europe and Asia continue to monitor every legal twist in Washington. Analysts believe traders are taking a “wait-and-see” stance until clarity emerges from the courts.

The Smoot-Hawley Factor

The mention of Smoot-Hawley adds historical weight to the debate. Passed during the Great Depression, the law raised U.S. tariffs on thousands of imports, sparking retaliation from other nations and worsening global trade collapse. It is widely regarded as one of the most damaging trade laws in U.S. history.

Yet, in today’s context, officials could use it as a legal shield to reimpose tariffs under a new framework. That possibility underscores how complex the future of U.S. trade measures remains, regardless of the Supreme Court’s ruling.

What’s Next for U.S. Trade Policy

If the Supreme Court invalidates Trump’s tariffs, new legal challenges are almost guaranteed, prolonging uncertainty for businesses and investors. Meanwhile, the Treasury Department appears determined to maintain leverage in trade negotiations, signaling that tariffs—or similar measures—will remain part of America’s economic playbook.

For corporations dependent on global supply chains, the message is clear: tariff risks are far from over. For Washington, tariffs continue to serve as both a political weapon and an economic bargaining chip. And for investors, it’s another reminder that in the world of trade policy, even a Supreme Court ruling may not be the final word.

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