USD Unchanged After Court Ruling on US Tariffs | Cash (@cashch)

The US dollar experienced limited movement against the euro on Friday following a Supreme Court ruling concerning the Trump administration’s use of emergency powers to impose tariffs, according to reports from cash.ch.

The court determined that former President Donald Trump had overstepped his authority when enacting broad tariffs against numerous trading partners, finding the invocation of a national emergency statute to be unconstitutional. Despite the ruling, the dollar’s decline was contained, with the euro trading at 1.1783 dollars in late US trading – roughly the same level as earlier in the European session. The dollar also edged slightly lower against the Swiss franc, closing at 0.7756, although the euro/franc pair remained stable at 0.9136.

President Trump, responding to the decision, indicated his intention to pursue alternative legal avenues for implementing tariffs. He stated he would sign an order leveraging a different statutory basis to impose a ten percent tariff on all imports to the United States, aiming to generate increased revenue, as reported by cash.ch.

The ruling comes amid ongoing concerns about the stability of the dollar as a global reserve currency, fueled by Trump’s broader trade policies. A report from Tagesschau.de highlighted a recent sell-off of the dollar linked to the unpredictable nature of Trump’s tariff announcements, with investors seeking refuge in currencies like the euro, yen, and Swiss franc. The euro had reached a three-year high against the dollar, briefly exceeding 1.14 dollars.

The Institute of the German Economy (IW) has also weighed in on the potential economic consequences of US trade policy. A study released by the IW indicated that even a limited continuation of tariffs, at a rate of 15 percent, could cost the German economy 0.4 percent of its GDP, or 16 billion euros annually, over the period 2025-2028. Should tariffs increase to 35 percent, costs could exceed 40 billion euros, potentially escalating with retaliatory measures from other nations.

Analysts at Cash.ch note that China stands to benefit from the ongoing US tariff disputes. The long-term implications of the US-China trade dynamic remain a key factor in the dollar’s future performance.