US COURT OF APPEALS RULES MOST OF PRESIDENT TRUMP'S TARIFFS ILLEGAL, WHAT'S NEXT? 🔹 What Happened — US Court of Appeals Says Most of Trump’s “Reciprocal Tariffs” Are Unlawful — Tariffs Are Too High, Apply to Too Many Countries, Have No End Date — Exceeds Presidential Authority Under the 1977 International Emergency Economic Powers Act — The Act was created to allow the President to respond quickly to national security and economic emergencies, but does not allow for broad and long-term tariffs — Only Congress has the Constitutional power to impose tariffs 🔹 Impact if rescinded — Imports affected fell from about 69% to 16% — A major blow to Trump’s trade policy 🔹 Tariffs Still Legal — Steel and aluminum tariffs (Section 232) Remain in Effect — Expanded to More Than 400 New Products — End of “de minimis” (goods under $800 are now subject to tariffs) continue 🔹 What happens next — The ruling is postponed until October 14, during which time tariffs will continue to be collected as usual — President Trump will appeal to the Supreme Court — If the Supreme Court agrees with the appeal: President Trump may switch to sectoral tariffs (steel, aluminum, cars, etc.) to continue trade pressure 🔹 From a market perspective — General sentiment does not like tariffs because they reduce cash flow and affect asset prices — If most tariffs are canceled → may be positive news in the short term — But if President Trump imposes more sectoral tariffs → the market may be more volatile and unpredictable — If the Supreme Court supports Trump: everything stays the same, tariffs remain the same