The battle over the fate of trade tariffs continues, but this time within the United States. Yesterday, President Donald Trump appealed to the U.S. Supreme Court, seeking confirmation of the tariffs he imposed and pushing for a review of a case that could affect trillions of dollars and grant him new, broad levers of influence over the global economy.

The appeal calls for an expedited review of the case with oral arguments. It is expected to be heard in early November this year. It should be recalled that a federal appellate court recently ruled that Trump cannot impose broad import tariffs under the 1977 law, which was designed for addressing national emergencies.

In his appeal, Trump argues that he has broad authority under the national security law to conduct his current tariff policy, and that lower courts mistakenly restricted this right.

If the Supreme Court sides with Trump, this would not only legalize his tariffs on steel, aluminum, goods, and other products, but also grant future presidents significant power over international trade. Many economists believe this could lead to a radical shift in global economic policy, enabling presidents to impose tariffs at will under the pretext of national security, without congressional approval. Critics argue that such broad authority could be abused, sparking trade wars, raising consumer prices, and destabilizing the global economy. They warn that this would open a "Pandora's box," allowing presidents to use national security as a pretext for protectionist policies that could damage relations with allies and undermine the global trading system.

Supporters of Trump's administration, on the other hand, argue that such flexibility is necessary to protect domestic industries and ensure fair trade. They claim that U.S. companies often face unfair competition from foreign governments, and tariffs are a necessary tool to level the playing field and protect American jobs.

It is clear that the Supreme Court's decision will have far-reaching consequences for the U.S. economy and its place in the world. It will define the balance of power between the executive and legislative branches in trade matters and influence U.S. relations with key trading partners for years to come. The Supreme Court is likely to consider the case, but this still requires the justices' approval. The administration has asked the Court to decide on this by September 10.

The appeal also concerns tariffs Trump imposed on Canada and Mexico — the U.S.'s closest neighbors — as well as China.

It is evident that the appeal will be a test for the Court, controlled by conservatives who have so far largely supported Trump, as he is claiming powers that his predecessors never pursued. If the justices take up the case, they will have to interpret a law that gives the president an arsenal of tools to address national security, foreign policy, and economic emergencies, but does not explicitly mention tariffs as one of those powers.

For now, such proceedings have had little direct impact on the currency market, but any drastic developments in this case could change the situation. We recall how Trump's announcement of a trade war last fall led to capital outflows. What will happen this time remains to be seen.

Technical picture for EUR/USD: At present, buyers need to break through the 1.1680 level. Only then will they be able to target a test of 1.1715. From there, the pair could climb to 1.1740, but doing so without the support of major players will be difficult. The farthest target is the 1.1790 high. If the instrument declines, I expect significant buyer activity only around 1.1645. If no support is found there, it would be better to wait for a new low at 1.1610 or open long positions from 1.1575.

Technical picture for GBP/USD: Buyers of the pound need to break the nearest resistance at 1.3445. Only then will they be able to target 1.3485, above which breaking through will be quite difficult. The farthest target is the 1.3515 level. If the pair falls, the bears will attempt to regain control at 1.3415. If they succeed, a breakout of the range will deal a serious blow to the bulls' positions and push GBP/USD down to 1.3380, with the prospect of reaching 1.3340.