Latest Finance-Economy News
US Supreme Court Rules Trump's IEEPA Tariffs Illegal
The US Supreme Court struck down President Trump's use of the International Emergency Economic Powers Act for imposing broad tariffs, deeming it exceeded authority without congressional approval. Markets reacted positively with stocks rising and the dollar softening, reducing expected drag on US growth.
This impacts global trade, prompting reactions from EU, Canada, and UK on stability.
SCOTUS Ruling Threatens US Fiscal Credibility
The decision could reduce government revenues by $1.9 trillion through 2036 and increase debt by $2.4 trillion, per Committee for a Responsible Federal Budget estimates. Average US tariffs may drop from 16.8% to 9.5%, cutting revenue by $100-120 billion annually.
This structural issue fuels bearish USD outlook due to worsening fiscal credibility.
Trump Pushes New 15% Global Import Levy Post-Ruling
Despite the court blocking IEEPA tariffs, President Trump proposes a new 15% tax on world imports, up from 10%, keeping UAE investors cautious. This aims to pursue economic agenda amid legal setbacks.
Markets watch for recalibration in global trade impacts.
G10 Economic Data Unlikely to Shift Rate Expectations
This week's releases, including US ADP employment, consumer confidence, jobless claims, and PPI, are seen as no game-changer for Fed easing. Limited volatility expected in currency markets as central banks remain patient.
Canada Q4 GDP may show stall, delaying BOC rate hikes.
Cyclically Neutral but Structurally Bearish USD Outlook
USD trades in line with rate differentials cyclically, but structurally bearish due to trade policy doubts, fiscal issues, and Fed politicization. Risks include drags pulling USD lower, as seen in Q2 last year.
Fading US confidence in trade and security adds pressure.
US Growth Slows to 1.4% in Q4 2025 Amid Rising Inflation
US economic growth decelerated to 1.4% in Q4 2025, below forecasts, while inflation climbed to 2.9%. This limits Federal Reserve's rate cut options despite tariff relief.
Soft data tempers positive market reactions to court ruling.
EU Monitors Tariff Ruling for Trade Stability Impacts
EU trade spokesman notes businesses need predictability, with €1.7 trillion annual US-EU trade at stake. Officials warn unpredictable tariffs undermine global supply chains.
Studying decision for transatlantic relations.
Canada Hails Ruling as Affirmation Against Unjustified Levies
Canada's trade minister states the SCOTUS decision affirms tariffs on steel, aluminum, autos were unjustified, though some remain. Expects ongoing trade frictions assessment.
Aligns with broader international relief.
UK Expects Privileged Trade Position to Persist Post-Ruling
UK plans collaboration with US to clarify ruling's effects on bilateral trade. Maintains optimistic view on continued privileged status.
Markets mixed amid uncertainties.
UAE Investors Recalibrate US Exposure Amid Tariff Shifts
UAE residents with US equities or global trade stakes face recalibration, balancing lower friction against weak growth and inflation. Financial markets pragmatic on clarity for AI investments.
Record tariff collections still minor revenue share.