Markets remain on edge as the highest court in the US postpones a critical decision that could rein in—or unleash—the President’s economic war chest.

The legal firewall that many hoped would shield the global economy from President Trump’s tariff crusade remains unbuilt. In a tense waiting game on Tuesday, the US Supreme Court released a slate of decisions but notably remained silent on the legality of the President’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs. The delay leaves the world in a state of suspended animation, with billions of dollars in trade hanging in the balance.

Legal scholars had anticipated a ruling today that would clarify whether the Executive Branch has the constitutional authority to use "national emergency" powers to levy taxes on imports without Congressional approval. The court's silence is deafening. It implies that the justices are deeply divided or are crafting a ruling of such magnitude that it requires more time—time that the global markets do not have.

"The Imperial Presidency"

At the heart of the case is the definition of power. Trump’s lawyers argue that the IEEPA gives the President "unlimited discretion" to protect national security, including economic security. Opponents, including a coalition of US businesses and importers, argue that this interpretation effectively makes the President a king who can rewrite trade law on a whim.

• The Implication: Until the court rules, Trump’s threat to hit Europe with 10% tariffs on February 1 stands. There is no legal injunction stopping him.
• The Reaction: Wall Street dipped on the news, with the Dow Jones shedding 1% as certainty evaporated. The Nairobi Securities Exchange (NSE) is also likely to trade cautiously, as investors hate uncertainty more than bad news.

What Next?

The delay effectively gives Trump a green light to proceed with his threats in the short term. It puts immense pressure on European negotiators to cut a deal before the legal machinery can catch up. For the rule of law, it is a testing moment: can the judiciary check the executive in real-time, or will the ruling come only after the economic damage is done?