GLOBAL MARKETS-Stocks lower, gold climbs as Trump's tariffs spread uncertainty

By Chibuike Oguh and Harry Robertson

NEW YORK/LONDON, Feb 23 (Reuters) - Global stocks were lower on Monday dragged down by losses on Wall Street and in European equities as fresh uncertainty over U.S. trade policy erupted following President Donald Trump's new global tariff in the wake of a Supreme Court ruling.

The U.S. Supreme Court struck down Trump's emergency tariffs on Friday, leading the president to quickly announce a new 10% rate on all U.S. imports, only to then lift it to 15% on Saturday. The new tariffs are based on Section 122 of the Trade Act of 1974.

The Dow Jones Industrial Average .DJI fell 1.60%, the S&P 500 .SPX fell 1.2% and the Nasdaq Composite .IXIC fell 1.3%.

"We are giving up roughly half of Friday's gain due mostly to the shift to 15% on Section 122 versus 10% announced Friday, reminding us that uncertainty remains high," said Mark Hackett, chief market strategist at Nationwide in Philadelphia.

U.S. stock markets are also set to be tested later this week by earnings from Nvidia NVDA.O, which are likely to cause waves given that the chip designer makes up almost 8% of the S&P 500 index.

The pan-European STOXX 600 .STOXX index fell 0.45%. Germany's DAX .GDAXI lost 1% but Britain's FTSE 100 .FTSE ended flat. MSCI's gauge of stocks across the globe .MIWD00000PUS fell 0.74%.

Gold climbed 2% to $5,215 an ounce XAU= and silver rose 3.7% to around $87.67 per ounce XAG=.

U.S. Treasury yields were lower across the board. The yield on benchmark U.S. 10-year notes US10YT=RR fell 6 basis points to 4.025%. The 2-year note US2YT=RR yield fell 4.2 basis points to 3.438%.

TARIFF DILEMMA

Trump on Monday warned countries against backing away from recently negotiated trade deals with the U.S. after the Supreme Court's decision, saying that he would hit them with much higher duties under different trade laws.

It was unclear when the new tariffs would be imposed, what might be excluded and whether every country would face a 15% rate. Some, including the UK and Australia, had 10% tariff rates under the former rules, while many countries in Asia had higher rates.

The Yale Budget Lab said the overall average effective tariff rate would stand at 13.7% after Trump's announcement on Saturday, down from 16% - the highest since 1936 - before the Supreme Court's ruling.

It added that it expected the 15% tariffs would expire after 150 days, following the Trade Act of 1974, under which they will be set. If so, the average rate would fall to 9.1%.

The U.S. dollar was weaker against the euro, Japanese yen and Swiss franc. The dollar fell 0.29% to 154.6 against the Japanese yen JPY=. Against the Swiss franc CHF=, the dollar weakened 0.21% to 0.774.

The euro EUR= was up 0.09% at $1.1791.

Brent crude futures LCOc1 settled down 0.38% to $71.49 while U.S. crude oil futures CLc1 fell 0.26% to $66.31.