The US stock market is back in the spotlight after Donald Trump asked the Supreme Court to expedite a review to overturn an appeals court ruling that previously ruled most of its tariffs were invalid.
The development has sparked fresh concerns about the direction of the country's trade policy, plunging markets into a state of uncertainty.
Tariffs are often seen as a mechanism to protect domestic industries and reduce trade deficits. However, they also have side effects that should not be underestimated.
In addition, the risk of inflation could also increase if prices continue to be pushed up by the tariffs.
Trump has previously claimed that the market needs tariffs to stay strong.
However, the record shows otherwise as major stocks fell immediately after the launch of reciprocal tariffs and surged when the tariffs were delayed.
This suggests that the market is more sensitive to policy uncertainty than the potential protection promised by tariffs.
In addition, long-term US Treasury yields are reported to be approaching 5%.
This development reflects investor concerns about the risk of a widening fiscal deficit if tariff revenue no longer serves as a regular source of government revenue.
For investors, tariff issues are not only about international trade relations, but also have the potential to affect stock market movements more broadly.
Such policy uncertainty often triggers sharp price fluctuations, thus increasing risk in the short term.
In an uncertain environment, more defensive sector selection and close monitoring of court developments and official administrative statements are safer measures.
