Former President Donald Trump's renewed push for tariffs on European imports and his proposal to acquire Greenland are drawing legal and market scrutiny, with officials signaling the Supreme Court is unlikely to overturn his trade measures. The developments are fueling volatility across commodity and currency markets.
- Supreme Court unlikely to overturn Trump’s proposed tariffs on European goods
- Tariff proposal tied to U.S. acquisition of Greenland, raising geopolitical stakes
- XLE and XLB ETFs declined 1.8% and 1.5% on trade policy concerns
- GDX rose 0.9% as investors seek safe-haven assets amid uncertainty
- EUR/USD fell to 1.0845, DXY climbed to 104.6 amid dollar strength
- Potential 12% decline in U.S. imports from Europe if tariffs are fully implemented
The U.S. Supreme Court is unlikely to intervene in former President Donald Trump’s sweeping tariff policies, according to senior economic adviser Bessent, as the administration moves to impose new trade barriers on European goods. The move follows Trump’s public announcement that tariffs would be applied to select European imports unless a deal is reached for the United States to acquire Greenland. The announcement, made just one day prior, has heightened global trade tensions and introduced fresh uncertainty into financial markets. The proposed tariffs are expected to target consumer discretionary and industrial goods, with initial estimates suggesting a 25% levy on certain European steel and aluminum exports. These measures could impact major multinational firms operating across the Atlantic, particularly in sectors reliant on cross-border supply chains. The Energy and Materials sectors are already reacting, with XLE and XLB ETFs declining 1.8% and 1.5% respectively in early trading. GDX, a gold mining ETF, rose 0.9% as investors seek safe-haven assets amid escalating geopolitical risk. Currency markets are also adjusting to the news. The EUR/USD pair dropped to 1.0845, its lowest level since October 2023, while the DXY index climbed to 104.6, reflecting a stronger dollar amid expectations of prolonged trade friction. Market analysts suggest that sustained tariff pressure could reduce U.S. imports from Europe by as much as 12% over the next quarter if implemented without exemptions. The legal viability of the tariffs remains a point of contention, but with the Supreme Court showing no immediate inclination to block them, the focus is shifting to diplomatic responses. European Union officials have signaled potential retaliatory actions, while U.S. allies are reassessing supply chain resilience. The outcome will likely shape trade policy debates in the 2026 election cycle and influence long-term investment flows across industrial and commodity markets.