Legal Clouds Stay As US Supreme Court Defers Crucial Verdict On Trump Tariffs

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The US Supreme Court has ruled in Donald Trump's favor in a series of cases in which it acted on an emergency basis since he returned to office in January 2025.

The apex court has a 6-3 conservative majority, which includes three justices appointed by Trump in his first term.

The US president has won on a range of issues in these emergency rulings like immigration, firing certain agency officials, cutting foreign aid, banning transgender people from the military, dismantling the Education Department and more.

In a notable contrast, the court last month refused to let Trump send National Guard troops to the Chicago area as part of his expanded use of the military for domestic purposes.

The S&P 500 was up 0.3% and above 6,940 points at 8:45 p.m. India time, while the Nasdaq 100 inched up 0.4%. The Dow Jones Industrial Average gained 0.1%.

The US Supreme Court didn’t rule on challenges to President Donald Trump’s tariffs on Friday, as the justices issued the first full-scale opinion of their term. The court could issue more opinions in the next two weeks as the justices have to return from their holiday recess, as per Bloomberg News.

Kevin Hassett said that the Trump administration has a backup plan in place for tariffs, emphasizing that alternative tools could be deployed almost immediately if needed. Speaking on Fox Business, the former National Economic Council official noted that the administration is prepared to act quickly and has multiple options available should tariff-related challenges arise.

Just days before the legality of tariffs came into question before the Supreme Court, US President Donald Trump claimed his government has or will receive more than $600 billion in revenue from duties imposed on trade partners.

Rebuking the US media for "interfering" in the upcoming decision from the apex court, Trump said his tariffs, imposed in April last year, has made the country strong financially and in terms of national security.

The US stock market opened higher on Friday, ahead of the Supreme Court ruling on Trump tariffs.

The S&P 500 rose 0.2% at open, while the Nasdaq Composite inched up 0.1%. The Dow Jones Industrial Average gained 121 points, or 0.3%.

To be sure, Wall Street reacted to the December jobs report that showed nonfarm payrolls increasing by 50,000 last month, less than estimated. That data, though slightly weaker than expected, showed a US economy that’s still trudging along, with investors anticipating that growth will ramp up.

The unemployment rate was 4.4% last month, down from 4.6% in November.

From India’s perspective, the US court's judgment carries tangible consequences. The decision could decide the fate of high tariffs on Indian exports, shape Washington’s stance on India’s purchases of Russian oil, and determine whether talks on an India–US trade agreement can be brought back to life.

India has been one of the hardest hit by Trump’s hardline trade measures. Tariffs on Indian goods were lifted to 50% in August last year, the highest imposed on any large economy, with a quarter of the increase directly tied to New Delhi’s continued buying of Russian oil.

Beyond tariffs, the court’s decision may influence whether the India–US trade agreement can be revived. After six rounds of inconclusive negotiations, duties remain the central obstacle. 

The challenge to Donald Trump's tariffs marks a major test of presidential powers. The outcome will also impact the global economy scarred by the 'Liberation Day' tariff war unleashed in April.

During arguments heard by the court on Nov. 5, conservative and liberal justices appeared to cast doubt on the legality of the tariffs, which Trump imposed by invoking a 1977 law meant for use during national emergencies. Trump's administration is appealing rulings by lower court that he overstepped his authority, according to a Reuters report.

Kevin Hassett said he has a high level of confidence that the US Supreme Court will rule in favor of Donald Trump, adding that he remains optimistic about US productivity and the broader economy.

Speaking on CNBC, the former National Economic Council director noted that he participated in a major call the previous night to discuss possible Supreme Court scenarios. Hassett also emphasized that, even if the administration does not prevail before the Court, there are tools and strategies available to address the outcome.

The US stock market will open at 8:00 p.m., just when the Supreme Court justices take the bench during a scheduled sitting.

Index futures are up, with contracts for S&P 500 and Nasdaq up 0.3% and 0.4%, respectively.

US President Donald Trump's disruptive tariff policy hangs in the balance before the country's highest court. The US Supreme Court could issue at least one ruling on Friday as several major cases remain pending including litigation testing the legality of the sweeping global tariffs.

The court may release opinions in argued cases when the justices take the bench during a scheduled sitting at 10 a.m. ET (8:00 p.m. India time), according to the court's website. The court does not announce ahead of time which rulings it intends to issue.