Even if the US Supreme Court rules against former President Donald Trump’s tariffs, the debate may not be over. Treasury Secretary Scott Bessent has suggested that Washington could turn to other legal tools to keep the levies in place.
Speaking to Reuters on Monday, Bessent said he expects the Supreme Court to uphold the tariffs. But if the court strikes them down, “there are lots of other authorities that can be used,” including the Smoot-Hawley Tariff Act — a law historically viewed as one of the most damaging in US trade policy.
The comments came after a federal appeals court declared most of Trump’s tariffs illegal last week. With US markets closed for Labor Day, traders have yet to react to either the ruling or Bessent’s remarks. Futures on Monday night remained steady, with investors appearing to adopt a wait-and-see approach amid the uncertainty.
Other market highlights
- Equinor backs Ørsted: Norway’s oil giant pledged nearly $1 billion in fresh capital to support the world’s largest offshore wind developer through its rights issue.
- Novo Nordisk leads in drug trial: The Danish pharma company reported that its weight-loss drug Wegovy reduced the risk of heart attacks more effectively than Eli Lilly’s Tirzepatide. Shares of Novo Nordisk rose nearly 2%.
- Defense stocks surge: Europe’s Stoxx Aerospace and Defense index jumped 2.2% after Norway placed a £10 billion ($13.5 billion) order for British-made warships.
- Chinese property bright spot: A Barclays note highlighted a developer that has already returned more capital than it raised, estimating a potential 40% upside for its stock.
Geopolitical optics in Tianjin
Away from markets, a viral clip from the Shanghai Cooperation Organisation (SCO) summit in China showed Prime Minister Narendra Modi sharing a light moment with Russian President Vladimir Putin and Chinese President Xi Jinping. Analysts said the exchange highlighted the complex balance of rivalries and partnerships shaping global power dynamics.
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