Wall Street and U.S. corporations are preparing for heightened uncertainty as the Supreme Court weighs the constitutionality of tariffs imposed under President Donald Trump’s use of emergency powers.
Analysts warn that overturning the tariff regime could spark market volatility, freeze corporate hiring and investments, and raise questions about the country’s fiscal stability. Some estimates suggest companies could be in line for up to $100 billion in refunds if tariffs are ruled unconstitutional, though the windfall may be offset by prolonged uncertainty and political battles, News.Az reports, citing Reuters.
“The status quo is now priced in by markets. Reversing it would cause massive uncertainty, and markets hate uncertainty more than anything,” said Rob Arnott, chairman of Research Affiliates.
The case hinges on whether Trump exceeded his authority under the 1977 International Emergency Economic Powers Act. A ruling is expected within months, with the Supreme Court’s current term ending in June 2026.
Markets have largely adapted since Trump’s “Liberation Day” tariff announcements in April, which initially sent asset prices plunging before stabilizing. Still, strategists warn that businesses could tighten spending if uncertainty drags on, potentially reversing recent record market highs.
