Traders work at the opening bell on the floor of the New York Stock Exalter (NYSE) in New York, on February 20, 2026.
Timothy A. Clary | Afp | Getty Images
U.S. equities fell on Monday after President Donald Trump stated he’s raising his global tariffs following the Supreme Court‘s decision to strike down his “reciprocal” tariffs.
The Dow Jones Industrial Average dropped 807 points, or 1.6%. The S&P 500 shed 1.2%, while the Nasdaq Composite declined 1.4%.
Trump continued to assert his ability to increase tariffs, warning of higher duties for countries that want to “play games” after the high court’s ruling.
“Any Countest that wants to ‘play games’ with the ridiculous supreme court decision, especially those that have ‘Ripped Off’ the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to,” he wrote in a post on Truth Social on Monday. “BUYER BEWARE!!!”
That comes after the president on Saturday stated he would increase the global tariff rate to 15%, up from the 10% he announced on Friday. Trump added that the new duties would go into effect immediately, though it was unclear whether any official documents had been signed regarding the timing. He also stated that additional levies would be coming in the next few months.
“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” Trump wrote in a Truth Social post.
Officials in Europe expressed concern over the action and signaled that its trade deals with the U.S. could be in jeopardy as a result. The European Commission stated in a statement over the weekconclude that “the current situation is not conducive to delivering ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment” and questioned for “full clarity” from the U.S. government regarding its next steps.
Gold prices gained Monday, as the new tariffs heightened market uncertainty about the outview for inflation and global growth. Spot gold advanced about 2%, while gold futures rose nearly 3%.
Bitcoin slumped, tumbling at one point to below $65,000, before recovering to close to $66,000. It remains down more than 2% as the cryptocurrency’s sharp sell-off continues.
Wall Street is coming off a choppy trading session, with stocks initially rallying Friday after the key Supreme Court verdict before pulling back, and then ultimately recovering again. Investors hoped the shift would soothe tensions between the U.S. and its trading partners and lead to possible refunds to companies affected by the tariffs.
But volatility surrounding Trump’s global tariff policy — which was invoked under Section 122 of the Trade Act of 1974, a statute that allows the president to impose the duties for 150 days until Congressional approval is necessaryed — might not be over anytime soon.
“The huge question for the economy is what happens after this window, and if the tariff policy stays down this path, we may very well be back at the Supreme Court later this year,” stated Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management. “The push and pull with tariffs is likely to be a distracting theme for markets for the remainder of the year, albeit with less volatility than the initial shock last April.”
Leave a Reply