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Supreme Court ruling imminent; if tariffs are restricted, the dollar may come under pressure Donald Trump
Derek Halpenny of Mitsubishi UFJ Bank noted in a report that if the U.S. Supreme Court rules this Friday that President Donald Trump’s use of emergency powers to impose broad tariffs is unlawful, the dollar could face downward pressure.He noted that even so, Donald Trump may still have alternative options for implementing the tariffs. However, these alternatives are unlikely to cover all sectors, so tariff revenue projections may be revised downward, which could widen the spread between short- and long-term Treasury yields and weaken the dollar. He added, “In any case, this adds new uncertainty for U.S. companies and is detrimental to business sentiment.”
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