22-February-2026
Markets and Finance
 
US Supreme Court ruling overturning Trump tariffs could spook bond vigilantes
21-Feb-2026

The U.S. Supreme Court's Friday ruling striking down President Donald Trump's sweeping tariffs prompted a muted rally in global stock markets while stoking worries among so-called bond vigilantes about government finances and higher bond yields. The decision could dent risk appetite among investors, especially after Trump announced Friday afternoon, as widely expected, that he will invoke other powers to re-impose the import duties. That could weigh on sectors with high foreign revenues or those sensitive to changes in the price of raw materials and components, investors said, citing tech, materials, energy, and industrials. The court upheld a lower court's decision that the Republican president exceeded his authority under the 1977 emergency powers law that he used to justify the duties. The government may now have to pay back $150 billion to $200 billion to U.S. and foreign companies that paid them, in a possible boost for automakers, consumer goods importers and other sectors that could at the same time drain the government's coffers , said investors.

News Source:- https://economictimes.indiatimes.com/markets/bonds/us-supreme-court-ruling-overturning-trump-tariffs-could-spook-bond-vigilantes/articleshow/128633841.cms