Quick Read
- A U.S. appellate court ruled most of Trump’s global tariffs unlawful on August 29, 2025.
- The decision affects tariffs on steel, aluminum, and consumer goods, initially justified on national security grounds.
- Governor Newsom criticized the tariffs, citing job losses and increased costs for American families.
- Trump’s administration also acquired a stake in Intel, sparking concerns about government overreach in private businesses.
A U.S. federal appellate court delivered a major blow to President $1 Trump’s trade policy on Friday, August 29, 2025, ruling that most of his global tariffs were unlawful. This landmark decision, which upheld a lower court’s ruling, could significantly impact Trump’s efforts to reshape global trade dynamics and raises critical questions about his broader economic strategies.
Background on Trump’s Tariff Policy
During his presidency, Donald Trump implemented sweeping global tariffs, targeting various imports, including steel, aluminum, and a range of consumer goods. These measures were justified under the guise of national security concerns, leveraging emergency powers to bypass Congressional approval. While supporters hailed the tariffs as a necessary move to protect American industries and reduce reliance on countries like China, critics argued that they hurt consumers and businesses by raising costs and inviting retaliatory trade measures.
According to ABC News, the U.S. Court of Appeals for the Federal Circuit ruled 7-4 against Trump’s tariffs, stating that they were “invalid as contrary to law.” The decision, however, includes a delay in enforcement until mid-October, allowing the Trump administration time to appeal to the Supreme Court. This temporary stay means the tariffs remain in effect for now, but the legal battle has cast a long shadow over their future.
Economic and Political Ramifications
The court ruling has intensified debates surrounding Trump’s economic policies. Governor Gavin Newsom of California issued a scathing statement on the matter, calling Trump “America’s biggest loser.” Newsom argued that the tariffs have caused significant economic damage, particularly to states like California, where businesses and consumers have borne the brunt of increased costs. He cited estimates suggesting that the tariffs could cost American households $25 billion and result in the loss of over 64,000 jobs in California alone.
Critics also point to broader economic stagnation under Trump’s policies. As noted by Governor Newsom’s Office, the first six months of Trump’s presidency saw a slowdown in economic growth, driven in part by his trade measures and immigration raids. The tariffs, combined with tax cuts for the wealthy, have exacerbated income inequality, further straining American families.
Trump’s Expanding Influence Over Corporate America
In a parallel development, Trump’s administration has been taking unprecedented steps to intervene in private businesses. As reported by Al Jazeera, the U.S. government recently acquired a stake in Intel, a leading chipmaker, as part of a broader push to secure domestic production and reduce reliance on foreign supply chains. While some view this as a pragmatic industrial policy aimed at safeguarding national security, others see it as a troubling expansion of government control over the private sector. Critics warn that such moves could set a dangerous precedent, fundamentally altering the relationship between government and business in the United States.
The Intel acquisition is the most significant intervention since the 2008 financial crisis, raising questions about how much power the president should wield in directing corporate affairs. This, coupled with the ongoing tariff debacle, underscores the complex and often controversial nature of Trump’s economic agenda.
The Path Ahead
With the court’s ruling delaying the impact until mid-October, the Trump administration faces a critical decision: appeal to the Supreme Court or reconsider its approach to trade policy. Either path carries significant risks and potential rewards, both politically and economically.
For American businesses and households, the stakes are high. The tariffs have already disrupted supply chains, increased consumer prices, and strained international relationships. As the legal and political battles unfold, the focus will remain on how these policies shape the U.S. economy in the months and years to come.
The court’s decision marks a pivotal moment in the ongoing debate over the balance of power between the presidency, the judiciary, and the broader economy. As the nation watches closely, the implications of this ruling could reverberate far beyond tariffs, influencing the trajectory of U.S. economic and political policy for years to come.