Asian markets started the week on a strong note after the Supreme Court of the United States struck down a major part of President Donald Trump’s tariff policy.
The court ruled that the International Emergency Economic Powers Act (IEEPA), which the White House had used to introduce sweeping tariffs in April, does not give the president the authority to impose those levies. The decision dealt a serious blow to Trump’s trade agenda.
But Trump quickly responded. He said he would introduce a new 10% global tariff under a different legal authority — and then raised that to 15% on Saturday. That move brought fresh uncertainty to global markets.
Asian stocks rise, tech leads the way
Despite the confusion, investors in Asia reacted positively.
In Hong Kong, the Hang Seng Index jumped more than 2.5%. Tech giants Alibaba Group and JD.com both climbed more than 3%.
In Seoul, the market hit another record high, helped by strong gains from chipmakers Samsung Electronics and SK hynix.
Markets in Singapore, Wellington, Taipei, and Manila also moved higher. Sydney dipped slightly, while Tokyo and Shanghai were closed for holidays.
Investors appear to be shifting money away from Wall Street and into Asian tech stocks, which are seen as cheaper and offering better value.
Dollar weakens, oil falls
The ruling also weighed on the US dollar. It fell against the yen, euro, and pound as traders digested the legal setback and ongoing uncertainty around US trade policy.
Oil prices dropped more than 1%, partly on hopes of progress in a nuclear deal with Iran. That eased some of last week’s worries about possible US military action in the Middle East after Trump warned that “bad things happen” and deployed warships and fighter jets to the region.
Uncertainty still hangs over trade
Analysts say the ruling does not mean Trump’s trade fight is over.
Rodrigo Catril from National Australia Bank said that while the IEEPA-based tariffs may be finished, the broader trade agenda is not. He warned that the administration still has other legal paths it can try — and those could be tied up in court for years.
The decision has also raised questions about existing trade agreements. European leaders were set to approve an EU-US trade deal this week, but that may now be delayed. According to reports, Indian trade officials have also postponed a planned trip to Washington aimed at finalizing an interim deal.
For now, markets are enjoying the relief rally. But the bigger picture remains unclear. With new tariffs possibly coming and legal battles likely ahead, global trade policy may stay uncertain for some time.
