Trump warns halted tariffs could trigger Great Depression.
Trump’s Tariff Tactics at the Justice Court
U.S. Appeals Scene
The Federal Circuit has paused a lower‑court decision that challenged President Donald Trump’s broad use of emergency powers to impose sweeping tariffs on key trade partners. The pending case will likely thread through the Supreme Court, where a conservative 6‑3 majority sits.
Trump’s Shocked Reactions
- Catastrophic Forecast – Trump warned on Truth Social that a court ruling against his trade levies would unleash “1929 all over again, a GREAT DEPRESSION!” and that America would “be unable to pay back these massive sums.”
- Revenue Triumph – He touted billions of dollars pouring into the U.S. Treasury, citing stock‑market records as evidence that the tariffs had generated “the largest amount of money, wealth creation and influence the U.S.A. has ever seen.”
Economists’ Concerns
Many economists fear the tariffs are inflating prices and that trade‑policy uncertainty is stalling investment. The tariff strategy is rooted in Trump’s belief that a global system is biased against the United States.
Tariff Approaches
- Emergency‑Based Tariffs – Trump declared a national economic emergency over “large and persistent annual U.S. goods trade deficits” to justify blanket tariffs.
- Sector‑Specific Tariffs – He imposed 25–50 percent tariffs on steel and other items, a move that is not part of the current litigation.
- Opponents argue that invoking blanket tariffs without Congressional consent violates the International Emergency Economic Powers Act and the U.S. Constitution.
July 31 Hearing Outlook
At the July 31 hearing, the appeals court expressed skepticism about the administration’s assertion that it had broad discretion to declare national economic emergencies and invoke tariffs as a remedy. The case’s eventual fate depends on legal arguments and judicial interpretation.
