Goldman Says Trump’s Tariff Setback Is Temporary—Other Tools Ready

​Goldman Sachs says a federal court ruling that blocked President Trump’s controversial “Liberation Day” tariffs is a setback—but not a showstopper. The decision halts over 6.7 percentage points of new tariffs, but Goldman analysts believe the White House can pivot using alternative trade tools.

According to chief U.S. political economist Alec Phillips, Trump could lean on Section 232 tariffs—used for national security-related levies on steel, aluminum, and autos. If fully deployed, these could restore as much as 7.6 percentage points in trade penalties.

The ruling came from the U.S. Court of International Trade, which sided with small businesses and Democratic-led states who argued Trump misused emergency powers to push through the levies. A panel of judges gave the administration 10 days to cease tariff collection, though the White House has already filed an appeal.

Trump also has the option to use Section 122 tariffs (short-term, emergency powers) or pursue longer Section 301 investigations against specific countries.

Goldman notes the ruling isn’t expected to derail the broader fiscal agenda in Congress, as tariff revenue wasn’t central to offsetting Trump’s massive tax-and-spend package. Still, the blocked tariffs were projected to raise nearly $200 billion annually—roughly the same amount the new fiscal plan is expected to add to the deficit in its first year.

​Bottom line: The court may have clipped Trump’s tariff plan, but Goldman believes he still has plenty of levers left to pull. The trade war may be down—but it’s far from done.