Court Halts Trump's Tariffs, Dollar Surges Amid Trade Turmoil
A U.S. court blocked President Trump's import tariffs, causing the U.S. dollar to rally. The decision provides relief amidst this year's trade-related currency struggles. Analysts predict a prolonged legal battle over tariffs as markets respond to potential economic changes.
The U.S. dollar experienced a notable rally on Thursday following a court decision blocking President Donald Trump's imposition of import tariffs on other countries. This ruling offered temporary relief to the dollar, which has faced challenges this year amid widespread trade uncertainty.
The Manhattan-based Court of International Trade ruled that the U.S. Constitution grants Congress exclusive power to regulate foreign commerce, which cannot be overridden by presidential emergency powers. The Trump administration promptly filed an appeal, highlighting the contentious nature of the tariffs issue.
Despite the dollar's rebound, which rose against currencies like the yen and Swiss franc, analysts are skeptical of a sustained rally, anticipating a lengthy legal battle over tariffs. The decision has refocused investor attention on the U.S. economy's performance, now closely linked to evolving trade policies.
(With inputs from agencies.)
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