There’s a lot of chaos and confusion now as to how legitimate that ruling can be.
As a reminder, the US Constitution gives Congress the power to impose tariffs but much of this power has since been delegated to the Executive Branch (led by the president) since the Trade Expansion Act of 1962. This means that the Executive Branch can call the shots on tariffs without the need for Congressional approval. We’ll have to see how Trump responds to this as well of course. Whatever he says or claims to be able to do next, however legitimate or not, will surely still have an impact on the reaction of broader markets. But one can reasonably expect a stronger reply in the early morning tomorrow in the US.
As markets digest the news, the dollar is sitting higher as we look towards European trading at least.
EUR/USD is down 0.3% to 1.1250 with USD/JPY up 0.6% to 145.70 levels at the moment
