Key Takeaways
- New York City has implemented a total travel ban starting at 9:00 p.m. Sunday as a massive nor'easter threatens to dump up to 24 inches of snow across the region.
- The US Supreme Court struck down President Trump’s global tariffs in a landmark 6-3 ruling, declaring the use of the International Emergency Economic Powers Act (IEEPA) for broad import duties unconstitutional.
- The United Kingdom faces a trade crisis as the ruling nullifies the "preferential" 10% tariff rate it spent months negotiating, just as Trump announces a retaliatory 15% global levy.
- Global equity markets rallied on the news of the ruling, with the FTSE 100 hitting record highs and exporters like Diageo (DEO) seeing significant gains.
NYC Shuts Down Ahead of "Decade-Scale" Blizzard
New York City Mayor Zohran Mamdani has declared a State of Emergency and a citywide travel ban effective from 9:00 p.m. Sunday through noon Monday. The "intense" winter storm is expected to bring 12 to 20 inches of snow to the five boroughs, with localized totals on Long Island potentially reaching 24 inches.
The ban prohibits all non-essential traffic on city streets, highways, and bridges, including cars, trucks, and e-bikes. NJ Transit suspended all bus and light rail services at 6:00 p.m. Sunday, while the MTA (MTA) has prohibited empty tractor-trailers from crossing major bridges. City officials warned that blizzard conditions and wind gusts up to 60 mph will make travel "treacherous to impossible" overnight.
UK Trade Strategy in Jeopardy After SCOTUS Ruling
The British government is scrambling to assess the fallout of the US Supreme Court's decision to strike down the "Liberation Day" tariffs. For months, UK officials boasted of a "privileged" deal that secured a 10% tariff rate on British goods, while the EU and other partners faced 15%.
With the court ruling that the original tariffs were an illegal overreach of executive power, the UK’s hard-won competitive advantage has effectively evaporated. Analysts suggest the UK may become the "biggest loser" of the ruling, as its diplomatic capital was spent on a deal that is now legally moot.
Trump Retaliates with New 15% Global Tariff
In immediate response to the judicial setback, President Donald Trump announced a new 15% global tariff under Section 122 of the Trade Act of 1974. This new measure, which allows for temporary surcharges to address balance-of-payments issues, is expected to take effect as early as Tuesday.
The British Chambers of Commerce warned that this move adds "fresh uncertainty" to a relationship already strained by the court's decision. While the ruling does not affect existing duties on steel and aluminum—which were imposed under different legal authorities—it creates a chaotic transition period for broader consumer goods and agricultural exports.
Market Reaction: Exporters Rally Amid Uncertainty
Despite the looming threat of new levies, the initial striking down of the IEEPA tariffs sparked a relief rally for major exporters. Shares of Diageo (DEO) jumped 3.9%, while luxury brand Burberry (BURBY) gained 3.3% on hopes of tariff refunds.
The FTSE 100 hit an intraday high of 10,715, as investors bet that the legal defeat would slow the administration's "America First" trade agenda. However, US Treasury yields rose as traders contemplated the potential for billions of dollars in refunds to be paid out to importers, which could necessitate increased government borrowing.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.