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Trump Warns Courts Not to Overturn Tariffs, Calls Them ‘Huge Positive’ for Markets

ByDayne Lee

Aug 12, 2025

Trump Warns Courts Not to Overturn Tariffs, Calls Them ‘Huge Positive’ for Markets

President Donald Trump on Friday warned U.S. courts against striking down his tariff policy, saying such a move would undo what he describes as historic gains for the American economy. Writing on Truth Social, Trump claimed his trade measures have created “the largest amount of money, wealth creation and influence the U.S.A. has ever seen,” and warned that overturning them now would make it “impossible to ever recover” from the losses.

“If a Radical Left Court ruled against us at this late date… it would be 1929 all over again, a GREAT DEPRESSION,” he wrote.

Legal Battle Over Tariff Authority

The warning comes as a federal appeals court reviews arguments over the scope of the president’s authority to impose tariffs under the International Emergency Economic Powers Act of 1977. Former House Speaker Paul Ryan told CNBC this week that the Supreme Court could ultimately invalidate duties imposed under the law.

Trump argued that if the courts intended to strike down the tariffs, they should have done so earlier in the case to avoid placing the country “in 1929 style jeopardy.” He described such a ruling now as “a judicial tragedy” from which the United States could not recover.

Legal experts have debated the limits of presidential powers on trade. Alan Wolff, a senior fellow at the Peterson Institute for International Economics, wrote this week that overturning the tariffs could create “a massive amount of red tape” in determining who would receive refunds, calling it “a bell that cannot easily be fully unrung.”

Tariffs and Market Reactions

Trump credited the tariffs with having a “huge positive impact” on the stock market. This year, markets have often rallied when the White House has delayed or softened tariff measures, while reacting negatively when higher duties were announced.

For example, in early April, when Trump suspended the planned “liberation day” tariffs for 90 days, the Nasdaq Composite surged 7% within minutes, and other indexes also saw significant gains that week. Sectors such as semiconductors and consumer electronics have benefited from exemptions granted to companies planning U.S. manufacturing expansion, with stocks like AMD, Marvell, and Apple posting strong advances.

However, these rallies have sometimes been short-lived as Trump has frequently shifted his tariff stance. Recently, markets have shown less volatility in response to tariff news, as investors have grown accustomed to the policy swings.

What The Author Thinks

Trump’s insistence that removing tariffs would cause a Great Depression is a dramatic framing, but it highlights how central trade policy has become to his economic narrative. The real risk may not be an immediate collapse, but the uncertainty such abrupt policy changes create for businesses and markets. Stability and predictability could matter more to long-term growth than any single trade measure.


Featured image credit: Michael Vadon via Flickr

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Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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