US President Donald Trump has warned US courts against blocking his tariff policy, saying it has had a “huge positive impact” on the stock market. The comments come as a federal appeals court is hearing arguments on how to handle the tariffs, which were imposed under the International Emergency Economic Powers Act enacted by Congress in 1977.
Trump stated that if the court rules against the tariffs, it would lead to a severe economic downturn and would be equivalent to the Great Depression of 1929. He also claimed that if the courts had acted sooner, they could have prevented such an outcome.
The imposition of higher US tariffs has faced legal challenges, with some arguing that they may exceed emergency powers granted to the President by Congress in the 1970s. However, Alan Wolff, a senior fellow at the Peterson Institute for International Economics, warned that striking down the levies would lead to “massive amounts of red tape” around who would receive refunds.
Markets have responded positively to Trump’s tariff policy changes, with the Nasdaq Composite experiencing significant gains after the president suspended initial tariffs in April. However, the rallies have been short-lived, and markets are now more stable around tariff news as investors view the president’s views as subject to change.
The federal appeals court is hearing arguments on how to handle Trump’s tariff policy, which has been a contentious issue since its imposition.
Source: https://www.cnbc.com/2025/08/08/trump-warns-courts-against-knocking-down-tariffs-says-duties-are-huge-positive-for-stock-market.html