The US Supreme Court on Friday did not deliver a ruling on legal challenges to President Donald Trump’s sweeping tariffs, deferring a closely watched decision on the radar investors across the globe. In India, equities have come under sustained pressure in recent sessions, with benchmark indices extending losses amid concerns over potential US tariff actions, continued foreign fund outflows, and the lack of progress in India-US trade discussions.
The US justices issued the first full-scale opinion of the term, with the court indicating that additional opinions could follow over the next two weeks after returning from its holiday recess. The absence of a decision kept uncertainty elevated, particularly for markets that have been sensitive to US trade policy signals. Investor focus had shifted sharply to the Supreme Court outcome, given its potential implications for tariffs affecting Indian exports.
At issue is Trump’s use of a 1977 emergency powers law to impose tariffs of 10–50 percent on most imports, including additional duties on goods from China, Canada and Mexico, as well as higher levies that have affected trade with partners such as India. The administration has justified the measures on grounds ranging from trade imbalances to national security concerns, including fentanyl trafficking. Lower courts have ruled that Trump exceeded his authority under the statute, prompting the appeal now before the top court.
In India, the tariff uncertainty has coincided with a sharp correction in equities, with the Sensex and Nifty extending their losing streak to a fifth straight session and posting their worst weekly decline in over three months. The benchmarks have fallen about 2.5 percent over the past five sessions, while BSE-listed companies have lost around Rs 15 lakh crore in market capitalisation over the same period.
Market participants have flagged export-oriented sectors as particularly vulnerable, noting that tariffs on Indian goods were raised to 50 percent after Trump cited New Delhi’s continued purchases of Russian crude.
Analysts have cautioned that even a court ruling against the tariffs may not immediately remove the uncertainty. Market experts said the lack of a ruling would prolong the overhang for export-oriented businesses, as duties remain in force and clarity on the scope of presidential tariff powers is pushed further out.
Some strategists said that even if the Supreme Court eventually strikes down the tariffs, the US administration could explore alternative policy or legislative routes to sustain trade pressure. They added that meaningful relief is more likely to come through a negotiated rollback rather than a court-driven outcome.
For Indian investors, the Supreme Court case is seen as important less for immediate relief and more for the clarity it may eventually provide on the scope of US tariff powers. Until there is either a definitive judicial outcome or a formal rollback of tariffs through India-US negotiations, sentiment around export-linked businesses and broader risk appetite is expected to remain fragile.
Global markets reacted cautiously to the deferral. US stocks pared early gains after the court declined to weigh in on the fate of most of Trump’s import levies. The S&P 500 was up 0.2 percent in mid-morning New York trade, while the Nasdaq 100 rose 0.3 percent. The Dow Jones Industrial Average was little changed.
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