[MARKET UPDATE] Markets little phased by Trump's tariff announcements

• After the Supreme Court ruled against Trump's IEEPA tariffs, the US President responded by immediately implementing a 10% increase on current tariffs (under Section 122) while confirming that all Section 232 and 301 tariffs remain in place. The President has stressed that they will still impose tariffs through other means, and he touted five options: the Trade Expansion Act of 1962 (Section 232); the Trade Act of 1974 (Sections 122, 201, and 301); and the Tariff Act of 1930 (Section 338). Trump did highlight that Section 338 takes longer to implement, however. He is also taking the angle that after today's ruling, it is now clear what the US can and can't do. Trump also noted they will be implementing Section 301 probes to protect the US, with the probing period lasting for five months, which will then help the US determine a fair tariff rate once the probes have been completed. On refunds, Trump said that if they have to refund the tariff revenue, they will be in court for the next five years, suggesting a decision will "have to be litigated!". He also noted that some trade deals negotiated under IEEPA do not stand, but he stressed that nothing has changed with India. Trade deals that no longer stand, will be replaced by other means of tariffs. The President also noted how he will go in an even stronger direction now, and he can charge much more than what he was charging. He also stressed that tariff income will now increase.
• Any tariffs under Sections 301 and 232 are set to remain as they are. Others will be charged a flat 10% rate under Section 122. Note, Section 122 has a 15% tariff limit for 150 days. With the 10% tariff being on top of normal tariffs, it suggests those facing 301 and 232 tariffs will see an extra 10% on this. 
• Treasury Secretary Bessent said that estimates show that the use of Section 122, 232 and Section 301 tariffs will result in virtually unchanged tariff revenue in 2026.  Noting they will be leveraging Section 232 and Section 301 tariff authorities that have been validated through thousands of legal challenges.
• A US official since said the US expects countries to honour trade frameworks. 

The recent tariff announcements from President Trump, while significant, have had a limited immediate impact on the markets. His approach underscores a continued commitment to leveraging tariffs as a trade tool, but the lack of dramatic escalation suggests that markets may view this as an extension of existing policies rather than a new crisis. Watch for potential market reactions in commodities and currency pairs as the geopolitical context evolves and trade relationships are tested.