The U.S. Supreme Court is expected to issue rulings this week that could significantly impact President Donald Trump's stated intention to acquire Greenland. The court is scheduled to rule on Tuesday and Wednesday on the scope of presidential power to impose tariffs under the International Emergency Economic Powers Act (IEEPA).

Analysts suggest that a ruling against the president's authority to unilaterally impose tariffs on routine international trade would undermine his leverage in pursuing the acquisition of Greenland. Trump recently posted on Truth Social, "Now it is time, and it will be done!!!" He also threatened tariffs on Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, starting at 10% and rising to 25% on June 1, until a deal is reached for the "Complete and Total purchase of Greenland."

UBS advised clients in a note that the threatened U.S. tariffs may be overturned by the Supreme Court. Carsten Brzeski and Bert Colijn of ING stated that an adverse Supreme Court ruling would render Trump's threats meaningless, at least in the short term.

The IEEPA grants the president authority to regulate international commerce during a national emergency. The central question before the Supreme Court is whether the president's use of this act to impose tariffs on a broad range of goods exceeds the authority granted by Congress. The legal challenge argues that the tariffs are not related to a declared national emergency and are therefore unlawful.

The potential Supreme Court ruling adds another layer of complexity to the already fraught issue of Greenland's status. The Danish government has repeatedly stated that Greenland is not for sale. The U.S. has a long-standing strategic interest in Greenland, particularly due to its location and potential resource wealth.

The Supreme Court's decision is anticipated to have broader implications for U.S. trade policy and the balance of power between the executive and legislative branches in matters of international commerce. Wall Street is closely watching the court's deliberations, as the outcome could affect international trade relations and economic stability. The rulings are expected to be released on either Tuesday or Wednesday.