Trump’s tariffs hit a legal snag this week, but experts and the White House suggest it’s far from over. With alternative legal tools and an appeal already in motion, the administration remains confident it can keep tariff pressure on America’s trading partners.
Key Facts:
- A U.S. trade court blocked 6.7 percentage points of tariffs imposed by the Trump administration.
- The ruling gives the administration 10 days to stop collecting the tariffs, prompting an immediate appeal.
- Wall Street analysts believe the ruling will have limited practical effect due to other legal tools available.
- The White House has stated it’s not immediately switching to alternatives but is confident the court is wrong.
- Analysts expect the administration may still generate nearly $200 billion in annual tariff revenue through other means.
The Rest of The Story:
The U.S. Court of International Trade ruled that President Trump misused emergency powers to apply certain global tariffs, siding with small businesses and Democrat-led states.
The court’s decision halts a significant portion of the levies and gives the administration a short window to cease collections.
However, both Goldman Sachs and Morgan Stanley have assessed the real-world impact of the ruling as limited.
They believe Trump’s team has numerous tools under trade law, including Sections 232, 122, and 301, that can be used to reapply similar tariffs, albeit with more time and administrative effort.
Goldman Sachs says the recent trade court ruling won’t stop the Trump administration from moving forward with new tariffs. In a note, Alec Phillips writes that even if the IEEPA-based tariffs are struck down, the White House could use Section 122 of the Trade Act of 1974 to… pic.twitter.com/XLKQ8ZmBWf
— Wall St Engine (@wallstengine) May 29, 2025
Kevin Hassett, head of the National Economic Council, emphasized that the White House is confident the ruling is flawed and is not immediately acting on alternatives.
Yet the administration is prepared to use previously approved methods if needed, including national security-based tariffs that could restore much of the lost leverage.
Commentary:
The court’s decision may look like a setback, but it’s far from a final defeat.
While judges may temporarily slow Trump’s economic momentum, they haven’t shut the door on tariffs.
In fact, the ruling inadvertently highlights just how many tools the executive branch has at its disposal to enforce trade policy.
Trump’s strategy has always involved maintaining maximum leverage in international negotiations.
That leverage doesn’t vanish with one court opinion — especially when tools like Section 232 remain untouched and ready to deploy.
Even Morgan Stanley’s experts admit the administration can likely “stitch together” the same tariff structure through alternate channels.
The bigger concern isn’t the legal roadblock — it’s the optics.
A court siding with Democrat-led states against the president’s trade strategy sends a signal of weakness to foreign governments.
That signal, unfortunately, can’t be reversed by simply filing an appeal or using another section of trade law.
Still, the administration isn’t without power.
The ruling makes the process more cumbersome, but not impossible.
Trump’s trade team has been resourceful, and this situation demands nothing less.
The White House’s confidence in overturning the decision also hints at a long game being played — one where legal persistence meets economic pressure.
If the court’s decision stands, it may only lengthen the timeline for new tariffs, not eliminate them.
The ruling may also force Trump’s team to get creative, using more transparent or politically palatable justifications.
That could turn a temporary PR setback into a longer-term political advantage.
The Bottom Line:
A trade court may have halted a chunk of President Trump’s tariffs, but the White House isn’t out of options.
Experts agree that other legal pathways can restore much of the lost revenue and maintain pressure on trading partners.
The real risk lies in the perception of weakened authority, not in actual enforcement power.
Trump’s team is betting that an appeal, coupled with smart legal maneuvering, will keep his trade agenda intact.
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