of Tariffs as Illegal Bring a Turning Point? Analysts "Pour Cold Water": Tariffs Still Remain

The analyst team at ING believes that even after a federal appeals court ruled President Trump’s comprehensive tariff plan illegal, his series of tariff policies will not change. "When it comes to tariffs, Washington has never prepared a Plan B."

According to CCTV News, last Friday, the U.S. Federal Circuit Court of Appeals upheld the previous ruling of the International Trade Court with a 7-4 vote, stating that the International Emergency Economic Powers Act (IEEPA) does not explicitly grant the U.S. president the authority to impose tariffs. Trump’s invocation of this law to levy tariffs exceeded his presidential powers.

The majority opinion of the appeals court stated, "These tariffs apply to almost all goods imported into the United States (and for 'reciprocal tariffs,' to almost all countries), with high and ever-changing rates that exceed those stipulated by the U.S. tariff system, and without any time limit."

The court noted that these tariff measures could remain in place until October 14 to allow the U.S. government to appeal to the Supreme Court. Trump previously responded that removing the tariffs "would be an absolute disaster for the United States" and has already appealed to the Supreme Court.

ING analysts wrote in their latest report on Tuesday, "Don’t lose sleep over interpreting what it means. The simple and straightforward take is that tariffs are here, and they are here to stay."

Fan pointed out that this could create a more positive backdrop for U.S. and global stock markets, although doubts remain about America’s reindustrialization efforts. At the same time, any reduction in tariffs would ease consumer price pressures, which is why retailers and American households are closely watching.