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This Friday (11:00 PM Beijing time), the U.S. Supreme Court will hold a hearing on the case, which could mark the first procedural turning point where the Supreme Court directly addresses the legality of Trump's global tariff policies. More importantly, the court may issue its first formal ruling on this tariff policy.
According to data from prediction markets, the current probability of supporting Trump's tariff policy is only about 30%. This suggests that the Supreme Court is likely to preliminarily find legal issues with the tariff measures. For Trump, this is a significant blow—since his focus since taking office in 2025 has been centered around tariffs.
Even more concerning is that the previously promised nationwide subsidy distribution plan also relies on tariff revenue. If the court rules these tariff measures illegal or partially repeals them, although the government may seek alternative means to maintain some tariffs, it will be difficult to restore the original comprehensive tariff scheme.
From an economic perspective, the reduction of tariffs could actually be beneficial for U.S. inflation management. But the deeper issue is: once the court declares tariffs illegal, it will severely limit the boundaries of executive power, and subsequent policy space will be greatly constrained. The impact of this uncertainty on market sentiment warrants close attention.