Dollar Steadies, Yields Rise After Court Blocks Trump Tariffs

​The U.S. dollar briefly spiked before settling, and Treasury yields edged higher, after a U.S. trade court ruled that the bulk of President Trump’s sweeping global tariffs were illegal. Investors reacted swiftly, with equity futures rallying while bond markets faced renewed pressure.

The court ruling suspended major elements of Trump’s “Liberation Day” tariffs, including elevated rates on China, flat global levies, and specific measures targeting fentanyl-linked trade with Canada and Mexico. However, tariffs imposed under other authorities—like those on steel, autos, and aluminum—remain in place.

Despite the legal blow, analysts say Trump’s trade agenda isn't over. Goldman Sachs noted the White House could still impose alternative tariffs under different legal tools. Mizuho’s Jordan Rochester added that markets see this ruling as a “small deviation” from Trump’s broader trajectory, not a reversal.

On the bond side, 10-year Treasury yields rose to 4.53%, and 2-year yields touched 4.05%, as investors absorbed both the court decision and its potential implications for U.S. growth and inflation.

Meanwhile, currency markets reflected mixed reactions. The dollar index has dropped over 7% since February, but rebounded slightly post-ruling. Options traders, however, remain bearish on the greenback long term—particularly against the euro, Swiss franc, and Norwegian krone.

​Bottom line: Trump’s tariff loss gave markets a moment of relief, but it’s far from the end of the policy fight. The dollar’s direction remains uncertain, and yields are still responding to deeper concerns about trade, growth, and fiscal strain.