The US Supreme Court's decision to repeal president Donald Trump's tariffs has been widely welcomed by investors, with the S&P 500 rising during the afternoon following the announcement.
Rob Burdett, head of multi manager at Nedgroup Investments, said the announcement "signals a more constructive path forward for investors" and that allocations to emerging markets and Europe should benefit.
“The U.S. Supreme Court’s decision to repeal President Trump’s global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) marks a significant affirmation of the rule of law - an outcome welcomed by investors," he said.
“From a market perspective, the removal of the IEEPA tariffs reduces an important drag on global trade flows and should support risk assets, particularly non‑US and emerging market equities, import‑heavy sectors, and EM FX.
"We believe that the Supreme Court ruling signals a more constructive path forward for investors in our portfolios from a global trade perspective. It reinforces the benefits of global diversification and flexibility - attributes already embedded in our portfolios.
"Our overweight allocations to Europe and emerging markets should benefit from improving trade conditions, while our active bond strategies are positioned to navigate expected volatility in long-end yields related to fiscal and refund uncertainty."
He said the near-term environment "could remain volatile" for investors as the Trump administration looks for ways to perpetuate the tariff regime, but the overall direction is supportive of globally diversified multi‑asset positioning.
