A U.S. Federal Court Rules Trump's Tariffs Illegal.. and the U.S. President Threatens to Appeal

The U.S. Federal Appeals Court ruled on Friday, August 29, that most of the global tariffs imposed by President Donald Trump are "illegal," in a ruling that touches the core of his trade policy. The court stated in its ruling that "the primary authority of Congress to impose taxes, such as tariffs, is exclusively vested in the legislative power under the Constitution," emphasizing that "tariffs are a fundamental authority of Congress."

In response to the decision, Trump attacked the court, calling it "extremely biased," and wrote on the platform "Truth Social": "All tariffs are still in effect!" He added: "An extremely biased appeals court incorrectly stated today that our tariffs should be removed, but they know that the United States will ultimately prevail."

Trump warned of the consequences of canceling these tariffs, saying: "If these tariffs are removed, it will be a complete disaster for the country. It will make us financially weak, and we need to be strong." He considered that "if the decision is allowed to pass, it will literally destroy the United States." He also stressed that tariffs are "the best tool to help our workers," hinting at his intention to use them for the benefit of the country "with the help of the U.S. Supreme Court."

It is almost certain that the Trump administration will appeal the ruling, as the appeals court has suspended the enforcement of its rulings until October 14, to allow time for the case to be reviewed by the U.S. Supreme Court, according to what was reported by CNBC.

This legal development comes at a time when Trump's economic policy is facing multi-front escalations, as another legal battle over the independence of the Federal Reserve is also heading to the Supreme Court.

On another note, data from the U.S. Treasury revealed a significant jump in tariff revenues. As of August 22, the government collected $29.6 billion from customs and consumption taxes combined since the beginning of the month, which is equivalent to the total collected for the entire month of July.

For his part, U.S. Treasury Secretary Scott Pruitt predicted that tariff revenues resulting from Trump's tariffs would exceed $500 billion annually, and could approach a trillion dollars. He said during a Cabinet meeting at the White House on Tuesday, August 26: "We saw a significant jump from July to August, and I believe we will see an even bigger jump from August to September." He acknowledged that his previous estimates of $300 billion annually "were very low."

According to Reuters, these tariff revenues are expected to offset increases in the deficit resulting from the tax and spending cut bill passed by Republicans this year, which the Congressional Budget Office expects to raise the deficit by $3.4 trillion over the next decade.