US court rulings deepen trade policy uncertainty
Legal challenges to Trump’s tariffs have sparked new debates over trade regulations, leaving businesses and policymakers navigating an unpredictable economic landscape.
A federal court declared that most of the tariffs imposed during President Donald Trump’s second term were illegal.
Initially, the ruling created major upside risk for the economy in 2025. However, a federal appellate court has temporarily stayed the ruling, keeping the tariffs in place.
Regardless of the legal twists and turns to come, the administration has other tools at its disposal to maintain tariffs at elevated levels. If the administration loses this case, it could enact sweeping tariffs of up to 15%, though they’d require congressional approval after 150 days.
The president also has the legal means to impose up to 50% tariffs on countries that discriminate against the US, but this authority has gone unused for decades.
