KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Key Takeaway:
The U.S. Supreme Court will hear a landmark case on whether President Donald Trump overstepped his authority in imposing sweeping global tariffs under emergency powers. The decision, due after oral arguments in November, could have multi-trillion-dollar implications for trade, corporate earnings, and global market stability.
Case Overview
The Justice Department appealed an August ruling by the Federal Circuit Court, which found Trump exceeded his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs.
The Supreme Court placed the case on a fast track, with oral arguments scheduled for the first week of November, shortly after the Court’s new term begins.
The tariffs remain in effect during the appeal.
Legal and Political Stakes
IEEPA History: The 1977 law was originally designed to allow presidents to address national security threats by sanctioning foreign adversaries or freezing assets. It had never been used to impose tariffs until Trump’s move.
Lower Court Ruling: The Federal Circuit held in a 7-4 decision that Congress did not intend to grant the president unlimited tariff powers under IEEPA. It also cited the Supreme Court’s “major questions doctrine”, which requires explicit congressional authorization for actions with vast economic consequences.
Challenges: Lawsuits were filed by small businesses, 12 states, and companies like Learning Resources. Plaintiffs argue that tariff authority rests with Congress under the Constitution.
Market and Economic Implications
Customs Duties at Stake: The tariffs cover trillions of dollars in imports over the next decade, with wide-ranging implications for corporate supply chains and consumer prices.
CBO Estimate: The Congressional Budget Office projects that Trump’s tariff program could reduce the U.S. deficit by US$4 trillion over the next 10 years.
Administration Argument: Trump’s team warns that limiting tariff power would expose the U.S. to retaliation and risk “economic catastrophe.”
Global Trade Context
Trump has made tariffs a cornerstone of foreign policy, using them to renegotiate trade deals and pressure partners such as China, Mexico, and Canada.
The case comes amid heightened geopolitical trade tensions, with tariffs also tied to efforts to combat fentanyl trafficking and address trade deficits.
A ruling against Trump could force a rollback of trade agreements, potentially unsettling markets and global supply chains.
Expert View
Tim Brightbill, international trade law specialist at Wiley Rein, noted that only a handful of trade law cases have ever reached the Supreme Court. He underscored the urgency:
“It just shows the extreme importance of this issue across the U.S. economy, and really the global economy.”
Bottom Line:
The Supreme Court’s decision will determine whether Trump’s tariff regime survives or collapses. For markets, the outcome could reshape trade policy, deficit projections, and global economic relations for years to come.
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