Senior economic official Bessent asserts the Supreme Court is unlikely to overturn new tariffs tied to Trump's trade policy, as the U.S. pushes for Greenland acquisition through trade leverage. The move heightens uncertainty for global markets and key sectors.
- Supreme Court is unlikely to overturn Trump-era tariffs, according to Bessent
- 25% tariffs imposed on EU steel and aluminum, with potential expansion to autos and agriculture
- EUR/USD fell 1.4% to 1.0782; DXY rose to 106.3 amid trade tensions
- XLE gained 2.3%, SPX declined 0.6% on sector-specific trade risks
- 90-day deadline for Greenland acquisition deal triggers escalation risk
- Potential EU retaliation could target U.S. tech and agricultural exports
Senior economic advisor Bessent has stated that the Supreme Court is improbable to overturn recently enacted tariffs, reinforcing the durability of Trump's signature economic policy. The announcement follows a day after the president announced new tariffs on select European imports, citing the need to pressure Europe into agreeing to a U.S. acquisition of Greenland. The tariffs, initially set at 25% on steel and aluminum imports from several EU nations, could expand to cover automotive and agricultural goods if no agreement materializes within 90 days. Market indicators reflect growing concern. The EUR/USD has dropped 1.4% to 1.0782, while the DXY index climbed to 106.3, reflecting increased demand for the U.S. dollar amid trade tensions. Within sectoral performance, XLE, the energy sector ETF, rose 2.3% on expectations of insulated demand for U.S.-produced oil and gas under the new trade regime. Conversely, SPX declined 0.6% as consumer discretionary and financials faced downside pressure from potential retaliatory measures. The geopolitical dimension intensifies the risk profile. Greenland’s strategic location and mineral wealth have drawn U.S. interest, with the administration framing the tariff strategy as leverage to secure long-term geopolitical alignment. This approach could trigger coordinated countermeasures from the EU, including proposed tariffs on American tech and agricultural exports—potentially affecting U.S. firms in the Materials and Consumer Discretionary sectors. Investors are reassessing supply chain resilience, particularly in energy and commodities. The combination of elevated tariffs and uncertain diplomatic outcomes has driven volatility in both equity and currency markets. Market participants now anticipate continued headwinds through the first half of 2026 unless diplomatic progress emerges.