Bloomberg Daybreak: US Edition

Instant Reaction: Trump’s Global Tariffs Found Illegal by US Appeals Court

Aug 29, 2025
A recent ruling declared most of Trump's global tariffs illegal, shaking the foundation of his trade policies. The judges left the tariffs in place for now, adding suspense over their future. Experts discuss the potential for Supreme Court involvement and the resulting uncertainty for businesses and investors. The decision affects consumer sentiment and could impact approval ratings ahead of the midterms. Ongoing legal battles raise questions about trade relations—especially with China—and the president's ability to navigate economic consequences.
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INSIGHT

Court Rules Emergency Tariffs Unlawful

  • The Federal Circuit found Trump's use of emergency authority for broad global tariffs unlawful.
  • The tariffs remain in effect while courts or the administration pursue appeals or alternative legal paths.
ADVICE

Pursue Alternative Legal Paths

  • The administration can pursue other legal tools like Section 301 to keep some tariffs in place.
  • Expect Washington to craft an alternative tariff regime while appealing the decision.
INSIGHT

Emergency Justification Was Legally Weak

  • Courts questioned the validity of declaring a trade emergency for long-running deficits.
  • That legal weakness made the administration's emergency justification hard to defend.
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