U.S. equity futures edged lower on Monday as markets continued to absorb the fallout from a Supreme Court decision striking down President Donald Trump’s emergency tariffs. The president quickly responded by proposing new global tariffs of 15%, though the measures are temporary, leaving investors and trading partners seeking clarity on the future of U.S. trade policy.
Futures move lower
U.S. stock futures pointed to a weaker open as investors evaluated Trump’s decision to introduce temporary blanket tariffs following last week’s court ruling.
As of 03:08 ET, Dow Jones futures were down 224 points, or 0.5%, S&P 500 futures had fallen 40 points, or 0.6%, and Nasdaq 100 futures declined 185 points, or 0.7%.
Wall Street’s main indices had ended the previous week higher, supported by optimism surrounding the Supreme Court’s long-awaited verdict. Although the court invalidated Trump’s use of a 1977 emergency powers law to impose sweeping tariffs, uncertainty remains over the broader consequences, including whether companies affected by the duties could receive refunds.
“Friday’s Supreme Court ruling sent a strong signal about the limits of presidential power,” analysts at ING said in a note.
They cautioned, however, that Trump is unlikely to retreat from his assertive trade stance, leaving markets unsure about the next phase of U.S. tariff policy.
“Uncertainty is back,” they wrote.
Trump proposes new global tariffs
Trump, who described the ruling as a “disgrace,” responded by invoking provisions of the 1974 Trade Act to introduce global tariffs of 15% for up to 150 days, aimed at addressing what he called “international payment problems.”
An earlier White House statement had suggested tariffs would initially be set at 10% beginning Tuesday, but Trump increased the rate over the weekend.
Congress — whose constitutional authority over trade was central to the Supreme Court’s decision — could extend the so-called Section 122 tariffs for an additional 150 days once they expire.
According to ING analysts, Trump could also theoretically allow the tariffs to lapse, declare a new emergency and restart the 150-day period, effectively creating a “de facto perpetual tariff instrument.”
Meanwhile, U.S. Customs and Border Protection said it will stop collecting tariffs invalidated by the court starting at 12:01 a.m. EST on Tuesday. The agency did not explain why duties continued to be collected after the ruling or whether importers might receive refunds.
Trading partners seek clarity
Major U.S. trading partners are also assessing how the ruling could affect recently negotiated trade agreements.
The European Commission, which negotiates trade policy for the European Union, called on Washington to honor the terms of a 2025 agreement and requested “full clarity” on how tariff policies will evolve following the court’s decision.
In a statement, the Commission warned the current situation is “not conducive to delivering ’fair, balanced, and mutually beneficial’” transatlantic trade and investment, adding: “A deal is a deal.”
China, which held intensive negotiations with the U.S. after last year’s tariff dispute, said it is conducting a “full assessment” of the ruling and urged Washington to abandon “unilateral tariff measures.”
“Cooperation between China and the United States is beneficial to both sides, but fighting is harmful,” China’s Commerce Ministry said.
Waller remarks in focus
Investors will also watch comments from Federal Reserve Governor Christopher Waller, who is scheduled to speak in Washington on Monday about the economic outlook.
Waller was among two policymakers who opposed the Federal Reserve’s January decision to keep interest rates unchanged at 3.5%–3.75%. While most officials cited stable inflation and labor market conditions, Waller and fellow Governor Stephen Miran favored lowering borrowing costs, citing concerns that employment trends could weaken.
Although the Fed cut rates several times in 2025 and is still expected to resume easing later this year, uncertainty remains over timing. Minutes from the January meeting suggested rate hikes could still be considered if inflation remains above the central bank’s 2% target.
Markets will closely monitor any remarks from Waller regarding inflation, employment conditions and the economic implications of the tariff ruling.
Oil prices decline
Oil prices fell sharply, giving back part of last week’s gains as traders evaluated renewed geopolitical developments and trade uncertainty.
Brent crude futures dropped 1.3% to $70.39 per barrel, while U.S. West Texas Intermediate crude futures fell 1.4% to $65.55 per barrel.
Both benchmarks had rallied nearly 6% last week amid fears of a potential U.S.-Iran confrontation and an unexpected decline in U.S. crude inventories.
The United States and Iran are now expected to hold a third round of nuclear negotiations on Thursday in Geneva, raising hopes for a diplomatic resolution that could reduce the risk of disruptions to Middle Eastern oil supplies.
Iran remains a key member of the Organization of the Petroleum Exporting Countries (OPEC) and possesses some of the largest proven crude oil reserves globally.