President Donald Trump’s administration has appealed against the U.S. Court of International Trade’s ruling that declared most of his tariffs illegal, continuing a pattern of rejecting various warnings about his trade policies.

According to MSNBC, the markets were the first to signal concerns about Trump’s tariff decisions, showing significant drops when he imposed and withdrew tariffs on Canada, China, and Mexico. When Trump announced his “Liberation Day” tariffs in April, markets experienced their worst decline since the beginning of the COVID pandemic, despite his promise that “the markets are going to boom.”

Trump’s advisers responded strongly to the trade court’s decision, with Stephen Miller calling it “a judicial coup” while National Economic Council Chair Kevin Hassett dismissed it as “a hiccup.” The U.S. Court of Appeals for the Federal Circuit has temporarily paused the ruling.

Economic impact grows as Trump maintains tariff stance

The U.S. economy has shown signs of strain, with a decline in the first quarter even before the full effects of the sweeping tariffs were felt. Consumer spending growth dropped to 1.2 percent, less than half the average seen from 2022 to 2024.

According to a Reuters analysis, major companies from America, Europe, and Japan report that Trump’s inconsistent trade policies have made it impossible to estimate costs accurately. These companies have already incurred $34 billion in higher costs due to the trade war.

Small businesses have been particularly vulnerable to the impact of these tariffs. Without the financial resources and political influence of larger corporations, they face increased costs for materials ranging from water bottles to cowboy boots, with these expenses likely to be passed on to consumers.

The predictability of Trump’s tariff threats and subsequent retreats has led traders to develop a strategy called “TACO” (Trump Always Chickens Out). When confronted about this acronym by CNBC’s Megan Casella, Trump responded negatively, calling it a “nasty question” and telling her, “Don’t ever say what you said.”

The Court of International Trade’s ruling, supported unanimously by both Democratic and Republican appointees, determined that the decades-old emergency powers law did not grant the president unlimited tariff authority. A similar ruling from a federal district court judge followed, but Trump’s administration continues to resist these legal challenges.

Economics professor Justin Wolfers highlighted the hidden costs of these policies on MSNBC’s Nicolle Wallace show, noting that, beyond visible effects, potential business opportunities are being lost due to uncertainty about import costs varying between 10 and 50 percent.

Despite multiple warnings from markets, voters, and courts, Trump maintains his stance on tariffs, though he has delayed implementing blanket tariffs for 90 days for all countries except China. His 25 percent tariffs on steel, cars, and aluminum remain in effect.