The Investment Implications of the Tariff Decision

From am.jpmorgan.com Watch this video at https://www.metalsmine.com/news/1385283-the-investment-implications-of-the-tariff-decision.

On Friday, the Supreme Court released a long-awaited decision, ruling that the President’s imposition of tariffs, using the 1977 International Emergency Economic Powers Act, otherwise known as IEEPA, was illegal. The President held a press conference that afternoon and issued a proclamation announcing a general 10% tariff on imported goods, using a different statute and promised to invoke a third set of statutes to replace the overturned tariffs on a more permanent basis. On Saturday, he announced that the 10% tariff rate was being raised to 15%. The initial market reaction to the decision and the President’s response was muted, probably because both were widely anticipated, at least in a broad sense. However, these latest developments will likely have significant economic and investment implications and so it is important to trace out the likely path of tariffs and their consequences from here. In particular, it is worth considering where tariffs stand after the Supreme Court ruling, the impact of the President’s response, future presidential and legislative action, whether and how IEEPA tariffs will be refunded, how all of this will likely impact the economy and what this ultimately means for investors.