Tariff ruling fuels US$30 trillion bond-market angst by hitting US deficit

US President Donald Trump during a news conference in the James S. Brady Press Briefing Room of the White House in Washington, DC, US, on Friday, Feb. 20, 2026. Trump delivered a broadside against Supreme Court justices after they struck down the bulk of his sweeping global tariffs, delivering a major blow against his signature economic policy. Photographer: Bonnie Cash/UPI/Bloomberg

WASHINGTON: The Supreme Court decision striking down President Donald Trump’s (pic) sweeping global tariffs reverberated across the US$30 trillion US bond market by threatening to increase the government’s budget deficit and pour fuel on an economy already contending with elevated inflation.

The drop was led by longer-dated bonds most exposed to the fiscal risks in the years ahead, which pushed 30-year Treasury yields up as much as six basis points to 4.75%, before paring the gain. The dollar dropped, snapping a four-day advance.