According to reports from the cryptocurrency world, Trump administration officials told the federal appeals court on Friday that if it rules Trump's global tariffs illegal, it would severely harm U.S. foreign policy. Treasury Secretary Basant warned that this would lead to a 'dangerous diplomatic embarrassment.' The White House submitted statements from Basant, Commerce Secretary Lutnik, and Secretary of State Rubio to the federal appeals court in Washington. The court is expected to rule soon on whether Trump exceeded his authority to impose tariffs under the Emergency Powers Act of 1977. During oral arguments on July 31, judges expressed skepticism about the government's claim of broad tariff powers, suggesting they might support challenges brought by a coalition of small businesses and Democratic-led states. Several cabinet ministers indicated that if tariffs were deemed invalid, it would overturn results achieved after months of negotiations with countries like the EU, Japan, and South Korea. 'Suspending the effectiveness of tariffs would expose the U.S. to the risk of retaliation from other countries, as they would perceive the U.S. as lacking the ability to respond swiftly to retaliation,' Basant said.
