Federal appeals court tariff ruling signals CFOs to 'plan for turbulence'

"The court's ruling wouldn't take effect until Oct. 14, and the Trump administration is expected to appeal the case to the U.S. Supreme Court, which may hear arguments this year or in 2026. On Tuesday, President Trump said he will ask the Court for an "expedited ruling" to overturn the appeals court decision. Daco said this ambiguity reinforces the importance of a "tariff tower watch" approach: monitoring legal and policy developments closely while planning across multiple horizons."

"In the near term, CFOs should align pricing strategies, revisit supplier terms, and model out cost scenarios, he said. More generally, he advises medium-term contingency planning that spans logistics, margin pressure, inventory management, and customer pass-through dynamics. EY research and industry reports recommend CFOs prioritize disruptive technology and data in scenario planning to strengthen resilience and decision-making. I asked Daco about the potential short- and long-term economic consequences for industries that had adjusted to the existing tariffs."

"Removing tariffs would be economically stimulative-lowering input costs, lifting margins, and potentially accelerating investment, he said. "But the reality is that any reprieve may prove fleeting," he explained. The administration retains broad authority to reimpose tariffs through other legal frameworks, such as Section 232 or 301 of U.S. trade law, and "the broader shift toward strategic protectionism is likely to persist," Daco said."

A federal appeals court ruled Aug. 29 that most Trump administration tariffs on global trading partners are illegal, creating renewed tariff uncertainty for businesses. The ruling is scheduled to take effect Oct. 14, but the administration plans to appeal to the U.S. Supreme Court and seeks an expedited decision, so tariffs are likely to remain temporarily. Businesses are advised to monitor legal and policy developments, align pricing, revisit supplier terms, and model cost scenarios. Medium-term contingency planning should cover logistics, margin pressure, inventory management, and customer pass-through dynamics. Removing tariffs would lower input costs, raise margins, and could accelerate investment, though reimposition risks persist under other trade laws.

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