If the administration chose to go that route, those new tariffs could go into effect within days, according to analysts at Goldman Sachs.
However, University of Michigan economics professor Justin Wolfers described Trump's methods as "madness"."If you believe in tariffs, what you want is for businesses to understand that the tariffs are going to... be permanent so that they can make investments around that and that's what would lead the factories to come to the United States," he told the BBC.
He said that whatever happens with this court challenge, Trump has already transformed the global economic order.Prof Wolfers said while Trump "chickens out from the very worst mistakes" - citing his original 'Liberation Day' levies and the threat of 50% tariffs on the EU - he doesn't backflip on everything.The president wants to keep 10% reciprocal tariffs on most countries and 25% tariffs on cars, steel and aluminium.
"Yes, he backs off the madness, but even the stuff he left in meant that we had the highest tariff rate yesterday than we'd had since 1934," Prof Wolfers said.All signs point to this being a fight that the Republican president won't give up easily.
"You can assume that even if we lose, we will do it another way," Trump's trade advisor Peter Navarro said after Thursday's appeals court ruling.
While the litigation plays out, America's trade partners will be left guessing about Trump's next move, which is exactly how he likes it.No court has struck down tariffs on cars, steel and aluminium that Trump imposed citing national-security concerns under Section 232 of the Trade Expansion Act of 1962.
He could expand import taxes under that law to other sectors such as semiconductors and lumber (processed wood known as timber in the UK).The president could also invoke Section 301 of the Trade Act of 1974, which he invoked for his first-term tariffs on China.
A separate 1930 trade law, Section 338 of the Trade Act, which has not been used for decades, allows the president to impose tariffs of up to 50% on imports from countries that "discriminate" against the US.But the White House is also expected to press forward in challenging the court rulings. The matter is widely expected to end up at the Supreme Court.