""With no indication of when the justices will address the issue, markets are now forced to price an open-ended legal risk around a major US trade policy. "This is uncertainty being extended, not resolved," says the CEO. "Tariffs affect prices, margins and investment decisions. "The legal challenge to the tariffs goes to the heart of presidential authority over trade. "A clear decision would've given companies and investors a basis for planning.""
""When the legal status of a policy that affects trillions of dollars in global commerce remains unresolved, risk premiums rise across equities, currencies and credit.""
""Tariffs already distort supply chains and cost structures," he notes. "Add legal uncertainty and you magnify the effect. Investment slows, confidence weakens and growth expectations come under pressure.""
The Supreme Court released three opinions but declined to rule on the legality of sweeping tariffs, leaving investors without legal clarity on a major U.S. trade policy. With no timeline for resolution, markets must price an open-ended legal risk that affects prices, margins and investment decisions. The legal challenge centers on presidential authority over trade. Businesses continue operating under rules that could be upheld, rewritten or struck down, prompting multinational firms to defer sourcing, pricing and capital commitments. The unresolved status increases risk premiums across equities, currencies and credit, distorts supply chains and raises inflationary pressures.
Read at London Business News | Londonlovesbusiness.com
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