Last Friday, the US Supreme Court voted against US President Donald Trump’s use of emergency powers to impose “Liberation Day” tariffs on countries around the world. The decision hindered one of the main policy decisions of the US administration’s economic agenda. However, the White House said it would look at other legal measures to impose tariffs, one of which is imposing a 15% tariff on US imports.

• US President Donald Trump said he would impose a baseline 10% tariff on all imports to the US following the decision by the US Supreme Court. Over the weekend, Trump posted that it would be a baseline 15% tariff. Trump is imposing the new tariff under Section 122 of the 1974 Trade Act.
• The European Union looks ready to halt the ratification process of its trade deal with the US. Meanwhile, India postponed its visit to the US, which was meant to finalize its temporary trade pact.
• There was some relatively good news for Canada and Mexico when the White House said it would still exempt products under the Canada-United States-Mexico Agreement (CUSMA). It will not add to sector-specific tariffs, like those on aluminum and steel.
• On Friday, an advanced estimate showed the US economy grew by 1.4%, annualized, in the fourth quarter of 2025. Fourth-quarter growth slowed compared to the third quarter, mainly in response to the US government shutdown.
• The US personal consumption expenditure price index rose by 2.9% on a year-over-year basis in December, picking up from the 2.8% year-over-year increase in November. The index is the US Federal Reserve Board’s preferred inflation gauge.

Global trade tensions were reignited on Friday, and left markets to wonder how the US Supreme Court ruling may impact global trade and economic activity. It is unclear how the ruling may impact CUSMA negotiations. Negotiations are expected to start in the months to come, but US President Trump has also noted a willingness to tear up the current deal.

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