A federal appeals court has delivered a major legal blow. This decision targets former President Donald Trump’s signature trade policy. Consequently, the future of his sweeping tariffs is now uncertain. The court declared these tariffs unlawful under a specific powers act. This ruling supports earlier decisions from a lower court. However, the tariffs currently remain in effect. They await a crucial Supreme Court review scheduled for October.
President Trump responded vehemently to this legal setback. He issued a stark economic warning on his social media platform. Furthermore, he claimed these tariffs drive massive new investment. Specifically, he stated they generate over $15 trillion in U.S. investment. He argued that striking them down would be catastrophic. Therefore, he said the nation would become a “Third World Nation.” He also added there would be no hope for regained greatness.
Moreover, independent analyses strongly contest Trump’s investment figure. For instance, fact-checking organizations found no evidence for it. The White House’s own website lists a much smaller number. It shows about $2.6 trillion in announced investments. A broader tally including pledges reaches $5.1 trillion. Clearly, this is far below the president’s $15 trillion claim.
Additionally, Trump praised the economic benefits of his policies. He asserted that prices are “WAY DOWN” across the country. Also, he also claimed inflation is almost nonexistent. He credited tariffs for pouring trillions into the economy. Moreover,he highlighted falling energy prices as a key success. He also noted gasoline prices are at multi-year lows.
Nevertheless, economists dispute this characterization entirely. U.S. Treasury Secretary Scott Bessent provided different data. He stated annual tariff revenues are closer to $500 billion. Importantly, these funds are collected from U.S. importers, not foreign countries. Congressional Budget Office projections also differ greatly. They estimate a total of $2–2.8 trillion over ten years.
Official government data further contradicts the inflation claims. The Bureau of Labor Statistics reports that inflation is cooling. However, it has not been “virtually nonexistent.” This contrast highlights a gap between rhetoric and economic consensus.
Ultimately, the legal battle over trade policy continues. The appeals court’s ruling stands as a significant obstacle. The administration’s next step is an appeal to the Supreme Court. The nation now waits for the highest court’s decision. The outcome will undoubtedly shape American trade policy for years to come. The fate of these sweeping tariffs hangs in the balance.
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