The US Supreme Court on Friday struck down a package of global tariffs imposed by the Trump administration under the International Emergency Economic Powers Act, ruling 6 to 3 that the measures lacked sufficient legal basis. The White House confirmed that the tariffs are no longer in effect following the decision.

Markets reacted positively. The Dow Jones Industrial Average rose 0.47 percent, to 49,625.97. The S&P 500 added 0.69 percent, and the Nasdaq Composite Index increased 0.9 percent.

The ruling could carry significant fiscal consequences. Economists at the Penn Wharton Budget Model estimate that more than $175 billion in tariff revenue may now be subject to refunds, marking a major setback for the administration's trade agenda.

But the policy fight is far from over. Within hours of the decision, US President Donald Trump announced on his social media that he had signed an executive order imposing a new 10-percent tariff on imports from all countries. The measure would take effect almost immediately, he said.

The legal setback comes as fresh economic data point to a slowing US economy. Data released by the US Commerce Department on Thursday showed that the goods trade deficit reached $1.24 trillion in 2025, up 2.1 percent from a year earlier.

Meanwhile, the fourth-quarter GDP grew at an annualized rate of 1.4 percent, sharply down from 4.4 percent in the third quarter, reflecting weaker exports and a drop in government spending, according to the US Bureau of Economic Analysis on Friday.

The back-to-back developments highlight growing uncertainty around US trade policy at a time when economic momentum is already cooling. Some business groups cautioned that uncertainty remains, expressing concern that tariffs could be reimposed through alternative statutory mechanisms.