Trump Tariffs Face Court Setback, but Experts Urge Investors to Prioritise Market Fundamentals

Legal disputes surrounding Donald Trump’s flagship tariff policy are emerging as a “distraction” for investors, according to market experts, who advise focusing on the underlying drivers of long-term wealth creation: robust corporate earnings and a resilient U.S. economy.

This perspective comes from the CEO of one of the world’s largest independent financial advisory firms following a federal appeals court decision that ruled most of the former President’s blanket 10% reciprocal tariffs exceeded his emergency powers.

While the tariffs are expected to remain in place until mid-October pending a possible Supreme Court challenge, the ruling has already injected uncertainty into the administration’s trade strategy, leaving investors to weigh potential policy shifts against broader economic fundamentals.

Nigel Green, CEO of deVere Group, says: “This ruling highlights a serious legal threat to one of the President’s most high-profile economic policies.

“But investors should not let themselves get distracted by courtroom drama. What ultimately matters for markets are the fundamentals, and those remain solid.”

He continues: “Even if the tariffs are struck down, we believe the Trump administration will look for new ways to tax imports or otherwise raise revenue from companies selling into the US.

“It would be naïve to assume this White House will simply abandon such a significant fiscal lever. Investors must factor in that some form of levy is likely to remain in play.”

Despite the legal clouds, US corporate earnings have underscored their resilience.

The S&P 500 has reported year-on-year earnings growth of more than 9% in Q2 2025, with over three-quarters of companies beating Wall Street estimates.

Mega-cap tech firms continue to dominate: Apple’s most recent results showed net income climbing 17% to $28.4bn, while Microsoft delivered a 21% jump in cloud revenue. Amazon reported a 22% increase in quarterly earnings, powered by both its retail and cloud arms, while industrials such as Caterpillar posted double-digit revenue gains, citing strong global demand for infrastructure.

Even consumer-facing firms, often most exposed to trade frictions, are surprising on the upside—McDonald’s and Starbucks both beat consensus forecasts thanks to continued consumer spending.

The macro picture is equally supportive. US GDP expanded at an annualised rate of 2.8% in Q2, unemployment remains under 4%, and inflation has cooled to just above 2%, giving consumers more spending power.

Nigel Green says: “Corporate America continues to show that it can grow earnings and sustain profitability even under an unpredictable policy regime.

“These are the signals serious investors should be paying attention to—not short-term headlines about court rulings.”

Markets historically discount policy turbulence when earnings remain strong. Past tariff disputes, such as those over steel and aluminium, rattled sentiment temporarily but did not derail long-term equity performance.

The takeaway for investors is that profitability and economic momentum ultimately set market direction.

“The risk is that investors overreact to political headlines and miss the real story—businesses are making money, the economy is expanding, and valuations are underpinned by earnings power,” notes the deVere CEO.

“If you’re serious about building wealth, this is where your focus must remain.”

Nigel Green adds: “We urge investors not to get caught in the noise. Keep your eyes fixed on quality names with strong balance sheets, durable earnings streams, and global reach.”

While the courts weigh in on the legality of Trump’s tariff programme, deVere stresses that the administration is likely to find alternative routes to achieve its trade and revenue goals. But as long as corporate profitability holds up and the economy continues to grow, investors should avoid knee-jerk decisions.

“Markets will always have political and legal dramas. But wealth is built by those who can see beyond them to the real drivers of returns. Fundamentals must remain the compass,” concludes the deVere chief executive.