The administration of Donald Trump has announced it will stop collecting certain tariffs after the Supreme Court of the United States ruled that the levies were imposed illegally using emergency powers.
US Customs and Border Protection announced all tariff codes that correspond to International Emergency Economic Powers Act restrictions will be suspended starting at midnight on Tuesday. The authorities have not revealed whether businesses that previously paid the duties will be entitled to receive refunds.
US Trade Representative Jamieson Greer stated that the United States would continue its tariff policy despite his legal defeat. The legal process will bring changes according to him but the American businesses will maintain their advantages in international trade talks through existing policy.
Financial markets reacted to the decision with immediate responses. The US dollar fell about 0.4% against a basket of major currencies as investors assessed the policy shift. The price of gold increased by 0.6% to approximately $5,135 per ounce as investors sought safe-haven assets.
Cryptocurrency markets displayed price fluctuations while Bitcoin experienced a decline of almost 4.8% which brought its price down to approximately $64,300 before it rebounded. S&P 500 futures contracts moved down approximately 0.5% during the initial trading session.
The situation remains fluid because investors and businesses need to wait for more information about replacement methods and the financial consequences of the court ruling.
