Above: 'Liberation Day' tariff signing in April 2025. These reciprocal tariffs formed the backbone of Trump's trade policy. Image: White House official.
President Donald Trump suffered a major defeat as the backbone of his tariff programme was struck down by the U.S. Supreme Court.
The court voted 6-3 against his use of special presidential powers to enact tariffs.
The Administration says it will deploy alternative powers at its disposal to levy the import tariffs.
For markets, the news was nevertheless significant: stocks are rising handsomely ahead of the weekend and the dollar is broadly lower.
To be sure, the dollar reaction is strange if we consider the dollar fell when Trump enacted the tariffs in the first place; surely the intuitive reaction would be for it to rally when those very tariffs are struck down?
Whatever the case, this is playing out USD-negative: the pound to dollar exchange rate rises to 1.3505, making fora. daily gain of 0.35%. Euro-dollar overturns a daily deficit to rise to 1.1795.
