TRUMP: Global Rates of +10% Immediate and Declaration of War to the Supreme Court – Chaos in the Market has begun

[Igor Pereira]

Traders, the market was expecting a retreat. Instead, Donald Trump just dropped a nuclear bomb into the global financial system and American institutional stability.

By Igor Pereira Financial Market Analyst

In his statement, the President not only challenged the Supreme Court's decision to overthrow emergency tariffs, but escalated the commercial war to a level never seen before. The uncertainty that the market so much hates has just reached its peak.

Below, the real-time dissection of the announced measures, the imminent constitutional crisis and how Gold and Dollar will react to this shock.

Trump made it clear that the court's decision will not cheapen imports. On the contrary, the bill has become more expensive.

• The Immediate Shock: Trump announced the immediate imposition of +10% additional tariffs globally.

• Legal maneuvers: Instead of using the International Emergency Economic Powers Act (IEEPA), which was the target of the Supreme Court, he invoked the 1974 Trade Act (Trade Act) and Trade Expansion Act.

• Focus Maintainer: National Security tariffs under Section 301 remain in force as well as fentanyl-related tariffs.

• ExpertFX Reading: Trump found the legal loopholes. He stated categorically that he does not need to ask Congress permission to impose tariffs and that the methods he will now use are "even stronger". The promise that "the income from tariffs will increase" means direct inflation in the vein of the American consumer.

The rhetoric used against the judiciary elevates US Risk-Country to emerging market levels.

• Front Attack: Trump declared he was "ashamed" of certain Supreme Court members, accusing them of not wanting to "do the right thing" and voting "no" automatically for being Democrats.

• The Major Charge: He suggested that the court was influenced by "foreign interests". This undermines the credibility of the highest court in the country.

• Extreme Threat: The President threatened that he has legal permission to "cut off all trade with a country" and "impose an embargo". He warned foreign countries that they are celebrating the court's decision that they "will not be dancing for long".

Do you remember our earlier analysis of GDP at 1.4% and PCE at 2.9%? That pronouncement is the gasoline that was missing from the stagflation fire.

• Gold (XAU/USD): The Institutional Rocket. American institutional crisis + global trade war = perfect storm for Gold. Inflation will trigger with these new global 10% tariffs, and escape to security (flight to safety) will be massive. The target of our top gray box at $5,091 must be swallowed by purchasing volatility.

• Dollar (DXY) and Indexes: The Dollar will face a tug of war: inflation requires higher interest (which strengthens the dollar temporarily), but a constitutional crisis and threats of embargoes destroy foreign confidence in the currency. For the S&P 500, global supply chains have just been strangled. Expect a severe liquidation (Sell-off) in technology and retail shares that depend on imports.

The system's broken. The Supreme Court tried to stop the charging machine, and the Executive responded with disproportionate force.

My Vision: Trump's claim that the Supreme Court has made its ability to impose "more powerful" tariffs shows that it will not back down a millimeter.

1. Imported Inflation: +10% of global tariffs invalidate any thesis that inflation is controlled. The Fed is now in an absolute dead end.

2. Positioning: Be cool. Volatility will sweep the stops The amateurs in the next few hours. The medium and long-term directional for the Metals (Gold and Silver) has just won the biggest fundamentalist catalyst of the year.

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