New Delhi. The US Supreme Court canceled President Donald Trump’s global tariff. The court said in a 6-3 decision that Trump misused the International Emergency Economic Powers Act (IEEPA) law. According to the court, the President does not have the right to impose tariffs on such a large scale, this is the job of Congress.

After the big decision of the Supreme Court of America, a new movement started in the market. With this move of the court, investors’ attention was drawn to America’s government income and financial condition. This is the reason why the dollar weakened a bit. At the same time, American bond i.e. treasury yield increased and a slight rise was seen in the stock market.

Dollar softened due to a court decision
The Dollar Index (Bloomberg Dollar Spot Index) declined by 0.2%. Actually, the market was expecting that the tariff would bring billions of dollars of revenue to the government treasury, which would strengthen America’s financial condition. But the court’s decision has put a question mark on this financial backup, due to which the confidence of investors has wavered a bit. The dollar was strengthening before the decision. In the environment of global tension, dollars were also being bought as a safe investment.

Slight rise in American stock market
After the decision to cancel the Trump tariffs, a slight rise was seen in the American stock market. There was no major surge in the market, but investors took it as a relief for the time being. Till the time of writing the news, there was a slight rise in all three major indexes. The S&P500 was up about 0.65%. Apart from this, Dow Jones rose by about 124 points or 0.25% and Nasdaq, the index of tech companies, was up by 1%. Experts say that Wall Street was expecting this decision to some extent, hence the market reaction remained calm. Meanwhile, some disappointing figures related to the slowing pace of the American economy and rising inflation also came out, which limited the market momentum.

Trump had made tariffs a weapon
Let us tell you that Donald Trump took oath as President on January 20 last year. Since then, Trump started using tariffs to put pressure on global trade. He imposed tariffs on almost all major trade partner countries. His argument was that in many countries heavy tariffs are imposed on American goods, whereas there American products are easily sold cheap or without tariffs.