UBS: Opportunity for Fed interest rate cuts if Trump’s tariffs are overturned by Supreme Court

UBS forecasts that a Supreme Court ruling against Trump’s tariffs could mean a refund of approximately 140 billion USD to importers, equating to 7.9% of the federal budget deficit for fiscal year 2025.

Such refunds might foster a low-tariff trade environment beneficial for the US economy, though the overall market impact may be limited as tariff costs have not significantly lowered S&P 500 earnings projections.

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