US Courts: Trump’s Global Tariffs Illegal
The recent ruling by the U.S. Court of Appeals for the Federal Circuit on August 29, 2025, declared that most of President Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful.
However, the court allowed these tariffs to remain in effect until October 14, 2025, to give the administration time to appeal to the U.S. Supreme Court. The Supreme Court is expected to hear the case quickly, given its importance. If the high court upholds the lower courts’ decision, the bulk of the tariffs under IEEPA will be canceled, and the administration may need to refund billions of dollars collected so far.
The ruling is significant because it challenges the broad unilateral tariff powers Trump claimed under emergency economic powers, emphasising that tariff imposition is fundamentally a Congressional authority.
This raises uncertainty about trade deals, on-going negotiations and future interactions with the Trump administration.
US Q2 Economic Growth Upgraded
The US Q2 2025 GDP growth was revised upward to 3.3% annualised from the initial 3.0% estimate.
The upgrade was primarily driven by higher consumer spending, which rose at a 1.6% annual rate compared to the earlier 1.4% estimate, and significantly higher investment growth, revised up to 5.7% from the initial 1.9%. A sharp decline in imports, down 29.8%, also contributed positively to the GDP by reducing the subtraction from GDP calculations, reversing a Q1 surge in imports that dragged down growth.
This stronger GDP growth revision highlights resilience amid tariff-related trade disruptions and is a positive signal for economic momentum in the second half of 2025.
Recession risk remains low, in my opinion.
Nvidia Losing Momentum
Nvidia recently reported its fiscal second-quarter results, with adjusted earnings of $1.05 per share on $46.74 billion in revenue, a 56% increase year-over-year. Despite beating estimates, Nvidia’s stock declined in after-hours trading due to a conservative revenue outlook and data center revenue missing forecasts for the second consecutive quarter. The company projects next quarter revenue to reach approximately $54 billion, above Wall Street’s $53.43 billion consensus.
Nvidia’s report validates ongoing robust demand for AI-capable semiconductors but also signals the industry is at a delicate inflection point balancing explosive growth with production costs, geopolitical risks, and market skepticism about sustained demand levels.
