Key Takeaways
- The Trump administration is actively preparing fallback options for its tariff policies as the Supreme Court reviews the legality of his major tariff authorities, with a federal appeals court having already struck down most of them.
- European leaders have voiced strong concerns over a proposed U.S.-Russia peace plan for Ukraine, calling for "additional work" and insisting on their and Kyiv's direct involvement in any negotiations that reportedly demand significant concessions from Ukraine.
- Thailand's newly-appointed Central Bank Governor indicated a preference for a weaker Baht, stating its current strength does not reflect economic fundamentals and exploring measures to stabilize the currency.
- Air France (AF.PA) flights at Paris' Charles de Gaulle Airport (CDG) experienced delays on Saturday due to fog, adding to recent weather-related disruptions across European air travel.
Trump Administration Prepares Tariff Contingencies Amidst Supreme Court Review
The Trump administration is reportedly working behind the scenes on alternative plans should the Supreme Court invalidate one of its key tariff authorities. This comes as the Supreme Court is set to review the President's power to impose tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). A federal appeals court previously ruled that most of President Trump's tariffs were illegally imposed, exceeding the authority granted by the decades-old emergency statute; however, that ruling has been temporarily halted pending the Supreme Court's decision.
White House Press Secretary Karoline Leavitt expressed "100% confidence" in the administration's legal arguments but confirmed that a "Plan B" is in place, with options under review including invoking Section 301 and Section 122 of the Trade Act. The Supreme Court's decision, expected soon, will significantly impact the President's ability to unilaterally shape international trade policy.
Europeans Demand Input on Trump's Ukraine Peace Plan
European leaders are insisting on their and Ukraine's direct involvement in any peace proposals for the conflict, following reports of a U.S.-Russia plan that has left them "blindsided". The proposed plan, which Europeans say needs "additional work," reportedly calls for significant concessions from Ukraine, including the surrender of the Donetsk and Luhansk regions, a reduction of its armed forces to 40% of current levels, a ban on foreign troops, and the recognition of Russian as an official language.
EU foreign policy chief Kaja Kallas emphasized that "for any plan to work, it needs Ukrainians and Europeans on board". This diplomatic push highlights the growing tensions and concerns among allies regarding the potential terms of an agreement that could be perceived as heavily favoring Moscow.
Thai Central Bank Signals Preference for Weaker Baht
Thailand's newly-appointed Central Bank Governor, Sethaput Suthiwartnarueput, has indicated that the current strength of the Thai Baht is not in line with the nation's economic fundamentals. The Baht has appreciated by 7% since the start of the year, partly due to a weaker U.S. dollar and rising gold prices.
The Bank of Thailand (BOT) is exploring various measures to stabilize the currency, including discussions around a potential gold trade tax and conducting gold transactions in U.S. dollars. Economists are suggesting that a weaker Baht, potentially achieved through quantitative easing, could boost liquidity, exports, and tourism, which are crucial for Thailand's economic growth.
Air France Flights Delayed by Fog at Paris CDG
Several Air France (AF.PA) flights departing from Paris' Charles de Gaulle Airport (CDG) experienced delays on Saturday due to dense fog. A spokesperson for the airline confirmed the disruptions, which are part of broader weather-related issues impacting air travel across Europe recently. Passengers are advised to check their flight status for the latest information.
Weekend Market Snapshot
Global markets saw minor fluctuations over the weekend. The DAX closed at 23218, down 0.07%, while the DOW ended at 46288, a slight decrease of 0.01%. The NASDAQ also saw a modest dip, closing at 24254, down 0.09%.
In contrast, the FTSE edged up 0.01% to 9580, and the CAC gained 0.01% to 8028. The ASX posted a small gain of 0.02%, reaching 8500. The Hang Seng remained flat at 25496.
Currency markets showed the EURUSD stable at 11514 (+0.00%). Commodities saw slight increases, with GOLD up 0.02% to 4066, and USOIL rising 0.24% to 5812.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.