Supreme Court Ruling Could Weaken USD: Potential Impact on Dollar Currency

A potential Supreme Court decision against former President Donald Trump’s use of emergency powers for imposing tariffs may impact the U.S. dollar, according to a report by BNP Paribas. If the court rules the tariffs are unconstitutional, analysts predict immediate weakening of the dollar. This could be due to a loss in key fiscal revenue and raise concerns about the sustainability of America’s national debt. As a result, investors might demand higher premiums for holding dollar-denominated assets. However, the report suggests that the Trump administration may find alternative tariff measures to compensate for this lost revenue.