Trump’s Tariffs Illegal

• In the US, the Supreme Court ruled against President Trump’s tariff program under the IEEPA framework, removing a major portion of his revenue-generating tariffs.
• The administration has indicated it will instead rely on Section 122 of the Trade Act, applying a 15% tariff for 150 days with the option to extend beyond that period.
• Economic growth slowed into year-end, with GDP expanding at an annualised 4% in Q4 compared with 4.4% previously, partly reflecting disruption from the government shutdown.
• Inflation pressures moved higher, with PCE prices rising 0.4% in December after 0.2% in November, leaving the annual rate at 2.9% y/y.
• Looking ahead, attention turns to the January CPI release on Wednesday, alongside investment partials that will help shape expectations for the Q4 GDP update.