Fight Against Trump Moves to the Courts
Author: Greg Valliere
April 22, 2025
REGARDLESS OF WHETHER YOU’RE A DEMOCRAT OR A REPUBLICAN, there’s growing anxiety over the Washington dysfunction and policy confusion that has battered the financial markets. Will there be three and a half more years of this?
AS WE HAVE WRITTEN, the Republicans are too timid to speak out against Donald Trump, and the leaderless Democrats are clueless on policy changes. So, is there any chance that the current chaos could end?
THE FOCUS WILL BE ON THE COURTS: Several major lawsuits are revving up against Trump’s tariffs; the fight is led by California Gov. Gavin Newsom, the left-wing activist who believes the judiciary could halt the Trump agenda.
THREE ACTIVIST GROUPS HAVE BEGUN A LEGAL CHALLENGE: All of the cases take direct aim at the Trump administration’s reliance on the once-obscure International Economic Emergency Powers Act, which Trump has cited as justifying tariffs.
IS THERE AN EMERGENCY that would justify massive tariffs? Many legal scholars argue that there isn’t, and they cite other factors that would argue against the tariffs. (An excellent article in this morning’s Politico cites legal challenges to the tariffs)
TRUMP REALIZES THAT THE COURTS COULD derail his agenda, so he has launched a ferocious assault on judges; he’s scathing even toward judges he appointed to the Supreme Court.
THE PROBLEM WITH THIS SCENARIO, in our opinion, is that these complicated lawsuits will take months or years to resolve; Trump is a master at dragging out legal battles with delays and more delays.
IN THE SHORT RUN, Trump will push ahead with his agenda, but there has been a major change in the narrative: the stock market crash has driven his polls sharply lower, which could cost Republicans the House in the fall of 2026.
TRUMP NEEDS SCAPEGOATS, and will continue to demonize the Federal Reserve. Another target will be Defense Secretary Pete Hegseth, who could be ousted within days or weeks.
BOTTOM LINE: THE CHAOS THAT HAS STUNNED the markets will persist but there will be an aggressive legal challenge. Can Jerome Powell be fired as Fed Chairman? We think he can’t — and the courts may agree.
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