USD Could Weaken If Supreme Court Rules Trump’s Emergency Tariffs Unconstitutional, 2026 Outlook Warns
COINOTAG News, December 2, reports that the French Bank of Law’s 2026 Outlook indicates a potential USD pullback if the Supreme Court finds the Trump administration’s emergency tariffs unconstitutional. In that scenario, the USD could weaken promptly as a key fiscal revenue stream is called into question, raising doubts about the sustainability of the fiscal deficit and prompting investors to demand higher risk premia on dollar assets.
The report also notes that the Trump administration could offset the revenue gap by pursuing alternative tariff measures or other policy tools, potentially mitigating long-run budget stress. Analysts caution that policy credibility and the timing of any compensatory steps will be critical for market expectations.
From a crypto perspective, such USD volatility tends to influence dollar-denominated liquidity and hedging costs, underscoring the need for risk-aware positioning in digital-asset portfolios as policy signals unfold.