The US Supreme Court on Friday postponed its ruling on legal challenges to Trump's comprehensive tariff measures, extending uncertainty for global markets and particularly impacting Indian equities, which have now declined for five consecutive sessions.

Supreme Court Decision Deferred

The US justices issued their first full-scale opinion of the term but did not address the tariff challenges, indicating that additional opinions could follow over the next two weeks after returning from holiday recess. The absence of a decision has maintained elevated uncertainty for markets sensitive to US trade policy signals.

At the center of the legal challenge is Trump's use of a 1977 emergency powers law to impose tariffs ranging from 10-50% on most imports. The measures include additional duties on goods from China, Canada, and Mexico, as well as higher levies affecting trade partners including India. Lower courts previously ruled that Trump exceeded his authority under the statute, prompting the current Supreme Court appeal.

Indian Market Impact

The tariff uncertainty has coincided with significant pressure on Indian equities, with both the Sensex and Nifty extending their losing streak and recording their worst weekly decline in over three months.

Export-oriented sectors have been flagged as particularly vulnerable, with market participants noting that tariffs on Indian goods were raised to 50% after Trump cited India's continued purchases of Russian crude oil.

Sector Vulnerability and Outlook

Analysts have cautioned that even a potential court ruling against the tariffs may not immediately remove market uncertainty. The lack of a definitive ruling prolongs the overhang for export-oriented businesses, as current duties remain in force while clarity on presidential tariff powers is delayed.

Market experts suggest that even if the Supreme Court eventually strikes down the tariffs, the US administration could explore alternative policy or legislative routes to maintain trade pressure. They indicate that meaningful relief is more likely through negotiated rollback rather than court-driven outcomes.

Global Market Response

Global markets reacted cautiously to the Supreme Court's deferral. US stocks pared early gains following the court's decision not to rule on the import levies.

For Indian investors, the Supreme Court case represents an important development for understanding the scope of US tariff powers rather than immediate relief. Until there is either a definitive judicial outcome or formal tariff rollback through India-US negotiations, sentiment around export-linked businesses and broader risk appetite is expected to remain fragile.

The US Supreme Court did not issue a ruling on Friday in a major constitutional case challenging President Trump's sweeping global tariffs, leaving businesses and markets in continued uncertainty. The justices issued only one ruling on Friday in an unrelated criminal case, as the court does not announce in advance which cases will be decided.

Constitutional Challenge Over Presidential Powers

The tariffs case represents a significant test of presidential authority and the Supreme Court's willingness to impose limits on executive power. During oral arguments heard on November 5, both conservative and liberal justices appeared to express skepticism about the legality of the tariffs.

Tariff Implementation and Justification

Trump invoked the International Emergency Economic Powers Act to impose "reciprocal" tariffs on goods imported from individual countries, affecting nearly every foreign trading partner. The administration justified these measures by declaring a national emergency related to US trade deficits.

Additionally, Trump used the same 1977 law to impose specific tariffs on China, Canada, and Mexico, citing the trafficking of fentanyl and other illicit drugs into the United States as constituting a national emergency.

Market Impact and Economic Implications

The ongoing legal uncertainty continues to affect global markets, with the outcome expected to have significant implications for international trade. As of January 9, 2026, at 02:30 AM IST, US markets showed mixed performance:

Top S&P 500 Gainers:

• APA: 25.37 (+8.47%)
• Texas Pacific Land: 302.95 (+7.66%)
• Mohawk Industries: 114.26 (+6.91%)
• Smurfit WestRock: 42.30 (+6.71%)

Top S&P 500 Losers:

• Seagate Technology Holdings: 284.47 (-7.72%)
• Datadog: 130.68 (-7.61%)
• Western Digital: 187.68 (-6.10%)
• Autodesk: 276.58 (-5.86%)

Political Stakes and Administration Response

Trump has defended the tariffs, stating they have made the United States stronger financially. In a social media post on January 2, he characterized a potential Supreme Court ruling against the tariffs as a "terrible blow" to the United States.

The Trump administration is currently appealing lower court rulings that determined the president overstepped his constitutional authority in implementing the tariffs. The challenge has been brought by businesses directly affected by the tariff policies and 12 US states, most of which are under Democratic governance.

The Supreme Court's eventual decision will establish important precedent regarding the scope of presidential emergency powers and their application to international trade policy.