US President Donald Trump has seen his tariff regime deemed illegal by America’s highest court, which will do away with his 30% tariffs on South Africa. <\/p>\n\n\n\n
After his return to the White House in 2025, the US President announced a range of tariffs as per his America First Strategy.<\/p>\n\n\n\n
South Africa, which has been a prominent target of criticism from the president, was hit with a 30% “reciprocal tariff.” <\/p>\n\n\n\n
The tariffs were under the authority of the International Emergency Economic Powers Act (IEEPA). <\/p>\n\n\n\n
The US is one of South Africa’s largest trading partners, and the tariffs would supersede many of South Africa’s duty-free exports under AGOA, which itself was recently renewed by Trump.<\/p>\n\n\n\n
However, the US President has been dealt a blow from the US Supreme Court, which determined that he overstepped his legal authority regarding the IEEPA tariffs.<\/p>\n\n\n\n
The deVere Group noted that the president made the move without congressional approval, with the conservative-leaning Supreme Court deeming it illegal. <\/p>\n\n\n\n
Devere said that the ruling is a major setback for the White House, as tariffs were a massive part of Trump’s economic and foreign policy. <\/p>\n\n\n\n
Responses to the move have been broadly positive, with stocks rising on the decision. Investors previously feared that the tariffs would hurt economic growth and company earnings.<\/p>\n\n\n\n
\n\u201cThe SCOTUS decision was widely anticipated by market participants and therefore it wasn\u2019t surprising to see a limited response in US rates,” said Ian Lyngen, Head of US Rates Strategy at BMO Capital Markets Corp. <\/p>\n<\/blockquote>\n\n\n\n
\n\u201cPretty mild reaction so far. Market is not really sure what to do. The big issue would have been any notion of refunds,” added James Athey, a Portfolio Manager at Marlborough Investment Management. <\/p>\n<\/blockquote>\n\n\n\n
Jane Foley, Head of FX Strategy at Rabobank, said that although the White House is expected to push on with tariffs, there are concerns about refunds in the meantime. <\/p>\n\n\n\n
This could put pressure on the US Treasury market, which could further unsettle the USD, given the world’s largest economy’s weak fiscal position. <\/p>\n\n\n\n
\nWith reporting from Bloomberg<\/em><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"
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