A U.S. federal court has blocked President Donald Trump's tariffs in May 2025, arguing that he overstepped his authority. The court stated that the U.S. Constitution grants Congress the exclusive power to regulate commerce. The Trump administration has filed an appeal, challenging the court's decision.
Following the court's decision, the dollar index experienced some fluctuations. Asian currencies showed mixed performance, while U.S. equity futures saw a rally. The dollar's long-term strength remains uncertain, influenced by economic factors like GDP growth, inflation, and the Federal Reserve's policies.
Economists have warned that Trump's tariff plans could lead to higher inflation and economic uncertainty. The legal challenges and appeals process add further ambiguity, potentially impacting U.S. growth and investment decisions. The situation remains fluid, with the dollar's trajectory dependent on both economic developments and policy responses.