The New Tariff Ruling

📆This Week’s Topic

Today I wanted to come back to tariffs. There have been important happening this week for tariffs. As you may already know an appeals court invalidated Trump’s Tariffs. This week we will discuss the details of the ruling and how it is going to effect you. So let’s dive in!

💳 Cause & Effect

Last Friday, a federal appeals court ruled that Trump’s Tariffs were illegal. In their final ruling, the court stated that Trump and the US government didn’t have the authority to impose sweeping tariffs. But, the court delayed the enforcement of its new tariff ruling until late October to be time to appeal in the Supreme Court. President Trump has already appealed the tariff case in the Supreme Court. Trump has mostly used a 1970 law called to impose tariffs on other countries. This law was the International Emergency Power & Economics Act.

The Uniswap web app lets you seamlessly trade tokens across 14+ chains with transparent pricing.

Built on audited smart contracts and protected by real-time token warnings, Uniswap helps you avoid scams and stay in control of your assets.

Whether you're discovering new tokens, bridging between chains, or monitoring your portfolio, do it all in one place — fast, secure, and onchain.

Get Started

📊 Statistics

A U.S. court of appeals ruled that the International Emergency Power & Economics Act or (IEEPA) could not be used in order to put it place tariffs for other countries to pay. Mr. Trump claims that the for him imposing high tariffs is to stop the flow of immigrants into this country. Without IEEPA, he is unable to make tariff decisions and needs congress to approve every decision they he would like to make to impose tariff laws.

🔚 Outcome

The outcome of this appeals court ruling for now is that the tariffs will be that the overall tariffs amount will be significantly less. For example, there was a tariiff on china for 50% of the cost of the good. That means if the good costs $15 to make you have to pay and extra $7.5 to the US government just to have it imported there. This can hurt a lot of businesses because businesses need to have good profit margins and these tariffs decreases profit margins.

⛱ Consumer Effect

These tariff affect consumers a lot too. The decrease in overall tariffs will effect in less inflation then predicted because prices are likely to fall because of the ruling. This is because is a business gets charged more for a product they will increase their price to consumers.

🏢Business Effect

This is also a really good for businesses because they will have to pay less in taxes. The US being the third largest country means that a lot of good will be imported and tariff are going to apply to those goods. Although, with this new tariff ruling there will be signficantly less tariffs and less taxes for these businesses to worry about.

⏳ Final Summary

In Summary, this tariff ruling causes inflation to be lower than otherwise expected with the tariffs and for businesses to be able to resume their previous lower cost operations. This new ruling allows a lot of tariffs to be illegal. Now in order for new tariffs or to edit existing tariffs, Trump needs to consult congress and they need approve the decision to implement the new policy or to reject the policy. This will make it so the power to make and control tariffs is not vested in one man.

🙏Thank You & Important Information

Anyway, thanks so much for reading this edition of Friday Finance. I am grateful for all the traction Friday Finance has gained in the past 9 months. As we are approaching 50 articles written and 300 days in business and I am glad you guys are on this journey with me. I hope you really enjoyed this article click below to share it with a friend to get free merch! Have a great week and I will see you next week.

Jacob Gans

Friday Finance