The Supreme Court’s decision that President Donald Trump illegally imposed tariffs on US trading partners under the guise that America’s trade deficit amounts to a national emergency is a victory for the rule of law. As such, it’s also a win for the country’s reputation as a destination for global capital. Financial markets should celebrate — but not too much.

The 6-3 ruling is sure to spark volatility as businesses and investors adjust to yet another curveball from an already chaotic presidency. That’s because it’s possible the White House may attempt to reinstate the tariffs under different statutes. Meanwhile, the US will have to reckon with a fresh hit to federal revenue when the budget deficit shows few signs of shrinking to a manageable level. In short, the court hasn’t managed to entirely nullify Trump’s egregious miscalculation of imposing the tariffs in the first place.

© Bloomberg