Daily Summary: The Supreme Court Halts Trump's Tariffs; But for How Long?
Date: February 20, 2026
Market Overview
The financial markets experienced heightened tension towards the end of the week following a significant ruling by the US Supreme Court, which invalidated a portion of tariffs imposed by President Donald Trump on various countries. This decision has led to speculation about the future of US trade policies and the potential for new tariffs.
Trump's Response to the Supreme Court Ruling
In a press conference, President Trump indicated his intention to impose new general tariffs on US trading partners, despite the Supreme Court's ruling. He mentioned plans to utilize alternative trade regulations to maintain pressure on imports, specifically referencing the Trade Expansion Act of 1962. Trump proposed a new global tariff rate of 10%, which would be implemented in addition to existing tariffs for a duration of five months. He also threatened to impose tariffs ranging from 15% to 30% on automotive imports and 20% on Chinese goods, citing national security and other concerns.
Legal and Economic Implications
Trump acknowledged the potential obligation to return billions of dollars in revenue from the invalidated tariffs, suggesting that the matter would be contested in court for several years. This situation introduces a prolonged period of legal uncertainty for importers seeking refunds. Despite these developments, Wall Street showed resilience, with the US dollar facing downward pressure, marking it as one of the worst-performing currencies currently.
Economic Growth and Inflation Concerns
The US economy's growth rate slowed significantly in the fourth quarter of 2025, dropping from 4.4% to just 1.4%. This decline, coupled with unexpected inflation data, raised concerns about stagflation. However, analysts suggest that the economic slowdown may be influenced by recent shutdowns rather than a true reflection of the economy's health. Additionally, PMI data indicated a combination of weaker growth and persistent inflation, complicating the economic outlook.
Commodity Market Movements
In the commodities market, silver prices surged by 5%, surpassing $82.7 per ounce, while gold prices rose by 1.4%, maintaining levels above $5,000 per ounce. These increases are attributed to geopolitical tensions, particularly regarding Iran and ongoing conflicts involving Ukraine and Russia, prompting investors to favor hard assets amidst global instability.
European Market Insights
In Europe, the composite PMI index rose to 51.9 in February, indicating growth, with manufacturing reaching a 44-month high. Although production costs are rising, selling prices have slowed, and business optimism is on the rise, suggesting a complex but potentially positive economic environment.
Corporate Highlights
Moncler shares experienced a notable increase of 13% following results that exceeded forecasts, driven by strong sales in Asia and robust performance from its brands. This positive sentiment extended to the luxury goods sector, benefiting companies like LVMH and Hermes.
Conclusion
The developments surrounding Trump's tariffs and the Supreme Court's ruling have created a complex landscape for investors, characterized by legal uncertainties and shifting economic indicators. As the situation evolves, market participants will need to stay informed and adapt to the changing dynamics.