Trump: Will request the Supreme Court for a "quick ruling" on the global tariff case; if victorious, the stock market will surge, otherwise, it will face a major shock

After the U.S. Court of Appeals ruled that most of the global tariffs imposed by the Trump administration this year were illegal, President Trump expressed a firm intention to overturn the ruling and continued to warn of the severe consequences of losing.

On Tuesday, Eastern Time, Trump stated that he would appeal the global tariff case ruling to the U.S. Supreme Court and reiterated that he introduced the global tariffs in light of the economic emergency in the United States.

Trump claimed that if he loses the global tariff case after appealing to the Supreme Court, it would cause "a shock perhaps unprecedented." If he wins the tariff case, the stock market would "soar to the sky." He believes that uncertainty is causing the stock market to decline.

During Trump's speech, U.S. stocks continued to decline. During the midday trading session, the S&P 500 index fell about 1%, the Dow Jones Industrial Average dropped over 380 points, down about 0.8%, and the Nasdaq fell 1.2%, all marking two consecutive trading days of losses and hitting at least a week low.

Trump later stated that he would request the Supreme Court for a "quick ruling," hoping the court would expedite the hearing and make a ruling as soon as possible to overturn the appellate court's decision that most tariffs were illegal. He hopes to appeal to the Supreme Court "tomorrow" because "we need a ruling as soon as possible," as tariffs are related to "the financial structure of our country."

Trump reiterated the consequences of losing the tariff case, stating:

"If the tariffs are removed, we could ultimately become a third-world country."

Trump also claimed that the decline in U.S. stocks on Tuesday was due to the tariff ruling from the previous trading day—last Friday—stating that the stock market "wants tariffs."

According to CCTV News, on August 29, last Friday, the U.S. Court of Appeals ruled that most of the global tariff policies implemented by Trump were illegal. The court stated that these tariff measures could remain in place until October 14 to allow the U.S. government to appeal to the Supreme Court.

CCTV reported that the Federal Circuit Court in Washington ruled that the International Emergency Economic Powers Act (IEEPA) does not explicitly grant the U.S. president the power to impose tariffs, and Trump's invocation of the law to impose tariffs exceeded his authority.

The appellate court's ruling effectively upheld the International Trade Court's decision from May this year, which found that Trump incorrectly invoked the IEEPA to implement tariffs. It overturned the so-called "reciprocal tariffs" and the tariffs imposed on the grounds of failing to take appropriate measures to prevent fentanyl from entering the U.S., but did not affect the tariffs on steel, aluminum, and copper imposed under Section 232 of the Trade Expansion Act of 1962.

The appellate court judges agreed not to enforce the ruling until October 14, remanding the case to a lower court to determine whether the ruling applies to all parties affected by the tariffs or only to the parties in this case. This effectively gives the Trump administration time and opportunity to appeal the case to the Supreme Court

Trump Claims America Will Be Destroyed Without Tariffs, Navarro Warns That Stopping Tariffs Will Be "Doomsday"

According to CCTV News, on the same day the appellate court's ruling was announced, Trump criticized the ruling via social media last Friday, calling it "wrong" for demanding the removal of tariffs and emphasizing that the current tariffs are still in effect. Trump stated that if the tariffs were removed, "it would bring total disaster to America."

On Sunday, the 31st, Trump wrote in a social media post: "Without tariffs, without the trillions of dollars we have already collected, our country will be completely destroyed, and our military power will vanish in an instant."

On the same Sunday, Trump's trade advisor Navarro stated that if comprehensive tariffs are ultimately blocked by the Supreme Court, "that will be the end of America."

Legal experts pointed out that if the Supreme Court takes up the case, its ruling will not only affect the legal foundation of U.S. trade policy but also have significant implications for U.S. and global economic and trade relations. U.S. media reported that the Supreme Court may not hear the case until December or January next year.

Becerra Confident of Winning but Considering Alternatives

On Monday, U.S. Treasury Secretary Becerra stated that he is confident the Supreme Court will support Trump's imposition of comprehensive tariffs under the IEEPA, but he is also preparing alternative plans.

Becerra likened the trade deficit to a critical point that could lead to severe consequences, stating, "Preventing disaster is an emergency," and compared this situation to the 2008-2009 global financial crisis.

Becerra said, "I believe the Supreme Court will uphold the President's authority to use the IEEPA. There are many other authorities that can be used—though they are not as efficient and powerful as the IEEPA."

Becerra mentioned that he is preparing a legal summary for the Deputy Attorney General, which will highlight the urgency of addressing decades of trade imbalances and preventing fentanyl from entering the U.S. He emphasized that the fentanyl crisis causes approximately 70,000 American deaths each year, constituting a reasonable basis for declaring an emergency.

If the Supreme Court upholds the lower court's ruling, Becerra stated that the government could utilize other legal tools, such as Section 338 of the Smoot-Hawley Tariff Act of 1930, which allows the President to impose tariffs of up to 50% on countries deemed discriminatory against U.S. businesses.

Serious Consequences of Losing, Uncertain Appeal Prospects

If the Supreme Court upholds the International Trade Court's ruling that Trump's tariffs are illegal, most of the tariff measures implemented by Trump this year will be revoked, severely undermining his ability to impose tariffs and potentially jeopardizing his core economic strategy of forcing companies to invest in the U.S. Although Trump has other tariff tools available, they are all more limited than the emergency powers he invoked.

U.S. importers affected by the tariffs may seek refunds or compensation, but the remedial process could be lengthy and contentious. The U.S. Department of Justice warned that revoking tariffs could lead to "fiscal collapse." As of July, tariff revenues totaled $159 billion, more than double that of the same period last year.

Currently, among the nine justices of the Supreme Court, six are conservatives, who may be inclined to support Trump's expansion of executive power as President. In cases where most lower court judges temporarily blocked Trump's policies this year, the Supreme Court has satisfied the executive branch's requests with rulings that provided little explanation, such as dismissing federal officials, deporting certain categories of immigrants, and withholding congressional appropriations for scientific and educational funding However, the prospects for the tariff case remain difficult to predict. The Paper cites legal experts who analyze that several Supreme Court justices have recently favored the "major questions doctrine," emphasizing that the executive branch must have explicit authorization from Congress when it comes to significant economic and political decisions, which makes Trump's appeal prospects not optimistic.

Conservative justices have previously used similar reasoning to reject several policies of the Biden administration, such as the moratorium on evictions. Since taxation is an inherent power of Congress, the Supreme Court is wary of the unlimited expansion of executive power, and Trump may not get his way.

CCTV News states that the most likely scenario is that the court acknowledges the president can temporarily impose tariff measures in extreme circumstances, but requires that their scope, duration, and amount must have a direct and strict correlation with the "state of emergency." In this way, Trump's universal tariffs would be difficult to maintain legally