US President Donald Trump said on Friday that he was disappointed after the Supreme Court ruled his broad tariffs were illegal. Speaking at a press conference in Washington, DC, he said he would use another law to impose a 10% global tariff.
He said the 10% global tariff would be added on top of existing tariffs. He also said all national security tariffs under Section 301 would remain in place, effective immediately.
Tariff Response Plans
Trump said he could stop all trade with a country and could impose an embargo. He said he would use other legal paths to apply tariffs and that he would take a tougher approach.
He said tariff revenue would rise and that the US could collect more money from tariffs. He also claimed the court’s decision would make his ability to impose tariffs stronger.
This announcement adds major uncertainty to the market, which often benefits options traders. The CBOE Volatility Index (VIX) has already jumped above 21 this morning, up from a relatively calm 14 just last week. We should consider buying call options on the VIX to benefit from turbulence in the coming weeks.
The immediate reaction in stocks is likely to be negative, so we should hedge long positions. Buying put options on the S&P 500 and Nasdaq 100 offers direct protection. Looking back at the trade escalations of 2018 and 2019, early tariff threats often triggered market declines of 5% or more.
Sector And Macro Implications
Sectors with heavy international exposure, such as technology and industrials, may be hit hardest by a global tariff. We should expect meaningful downside pressure on companies with complex supply chains. This makes buying puts on specific large-cap tech and manufacturing stocks a more targeted approach.
This action comes at a difficult time for the economy. With Q4 2025 GDP growth at a soft 2.1% and the latest CPI showing inflation still above target at 2.8%, this tariff could slow growth while pushing prices higher. That increases the risk of stagflation.
In this setting, the US dollar could strengthen as global capital looks for a safe haven, even though the policy starts in the US. We can use currency futures to take a long position in the dollar index (DXY). This is a pattern seen often during the trade disputes of the late 2010s.
Gold may be the clearest winner as a hedge against this level of geopolitical and economic risk. We should expect a flight to safety that lifts gold prices. Buying call options on gold miners or using futures on gold itself is a direct way to trade this move.
Create your live VT Markets account and start trading now.
here to set up a live account on VT Markets now
